Gold prices endured weak early performance on Wednesday before popping to the upside later in the day, when solid retail sales and rising inflation numbers in the U.S. renewed investor worries that the Federal Reserve will raise interest rates sooner rather than later.
The U.S. dollar actually lost value on Wednesday, which also helped add to gold’s gains. April Comex gold is now approaching three month highs once again, trading around $1,237 per ounce early Thursday morning.
For the technical analysis on gold prices, we’ll defer to the experts over at Kitco:
Technically, April gold futures prices closed nearer the session high. The gold bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,236.00 and then at last week’s high of $1,246.60. First support is seen at today’s low of $1,217.50 and then at $1,210.00. Wyckoff’s Market Rating: 6.0
On the ETF side of things, the SPDR Gold Trust ETF (NYSE:GLD) rose $0.28 (+0.24%) in premarket trading Thursday. Year-to-date, GLD has gained 7.15%, versus a 5.10% rise in the benchmark S&P 500 index during the same period.