Comex gold futures prices Wednesday morning scored a fresh all-time record high of $1,438.20 an ounce, basis the April contract, as of this writing. Meantime, Comex silver futures notched another fresh 31-year high of $34.89 an ounce, basis May futures. The precious metals bulls are benefiting from safe-haven investment demand, inflation fears and a weakening U.S. dollar index.
Technically, the gold market bulls have the strong overall technical advantage. Prices are in a steep five-week-old uptrend on the daily bar chart. On the longer-term charts, gold prices have been trending higher for 10 years. Gold bulls’ next near-term upside technical breakout objective is to produce a close above technical resistance at $1,450.00 an ounce. Bears’ next near-term downside price breakout objective is closing prices below psychological support at $1,400.00. May Comex silver futures bulls also have the strong overall near-term and longer-term technical advantage. Prices are in a steep five-week-old uptrend on the daily chart.
The next downside price breakout objective for the silver bears is closing prices below solid technical support at $32.50. Bulls’ next upside price objective is producing a close above solid technical resistance at $35.00 an ounce. Importantly, technicals at present suggest the path of least resistance for both metals’ prices will remain sideways to higher until there is a strong near-term technical clue to suggest the powerful price uptrends are coming to an end. Stay tuned!–Jim Wyckoff