Gold prices ended the U.S. day session modestly higher Thursday, boosted by the announcement from the Bank of England that it is easing its monetary policy.
Gains were limited, however, by a firmer U.S. dollar index. December Comex gold was last up $3.10 an ounce at $1,367.70. September Comex silver was last down $0.026 at $20.445 an ounce.
The Bank of England at its regular monetary policy meeting Thursday cut its main interest rate by 0.25%, to 0.25%–the first rate cut since March of 2009. The BOE also announced a corporate bond-buying program, also known as quantitative easing. Many had expected the BOE to announce monetary policy stimulus measures at this meeting. European and U.S. stock indexes saw mild rallies on the BOE news, as did U.S. Treasury prices.
Traders and investors are awaiting Friday morning’s July U.S. employment report from the Labor Department. The key non-farm payrolls number is expected to come in at up 180,000. Look for active trading in many markets in the immediate aftermath of the job report—especially if the non-farm jobs number is a miss from expectations.
Crude oil prices were higher Thursday, on short covering, and hovering just below $42.00 a barrel. Earlier this week crude prices dropped to a four-month low. The other key “outside market” on Thursday saw the U.S. dollar index trading firmer on a corrective bounce after hitting a five-week low Tuesday.
Technically, December gold futures prices closed nearer the session high. The gold bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the July high of $1,384.80. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of $1,353.20. First resistance is seen at this week’s high of $1,374.20 and then at $1,380.00. First support is seen at $1,360.00 and then at this week’s low of $1,353.20. Wyckoff’s Market Rating: 7.0
September silver futures prices closed nearer the session high. The silver market bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $21.225 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $19.50. First resistance is seen at this week’s high of $20.835 and then at $21.00. Next support is seen at $20.00 and then at $19.75. Wyckoff’s Market Rating: 7.0.
September N.Y. copper closed down 240 points at 217.45 cents today. Prices closed nearer the session low and hit a three-week low today. The copper bears have regained the overall near-term technical advantage. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at the July high of 227.75 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the July low of 211.65 cents. First resistance is seen at today’s high of 220.40 cents and then at this week’s high of 224.75 cents. First support is seen at today’s low of 215.55 cents and then at 213.00 cents. Wyckoff’s Market Rating: 4.0.
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