Gold, silver prices rise on technical buying as nickel, aluminum hit new highs
Temitayo Ayetoto is Businessamlive Reporter.
You can contact her on temitayo.ayetoto@businessamlive.com with stories and commentary.
Gold and silver prices went higher in early U.S. trading Wednesday with silver hitting a 2.5-month high, trading above $17.00.
The chart postures for both metals are tilted in favour of the bulls, which is inspiring technically based buying interest at mid-week.
Base metals, on the other hand, traded sharply higher today with aluminum gaining over four percent to 2496.0, nickel by 3.27 percent at 14780.0 and copper up 1.48 percent to trade at 6976.00.
Both aluminum and nickel rallied to fresh highs driven by supply fears and effects of import duties on the broader market as a whole. Despite weaker macro data from China, the surprise decision to cut bank reserve requirement has also boosted prices in the early session.
The overall sentiment remains strongly bullish and it is expected that base metals as a whole will rally sharply in the short term.
Bullions are trading sharply higher as the dollar index weakened considerably following stronger reports from the US. Ongoing trade tensions between China and US along with the attacks on Syria have raised geopolitical tensions and boosted safe-haven demand for precious metals.
Technically, gold is expected to approach resistance at 1362-1373 this week whereas silver has broken above its medium-term resistance at 16.90 for the first time and is likely to rally sharply in the short term if prices sustain above the level.
On the downside, supports are expected to come into play at 1350.0 for gold and at 16.90 for silver.
June Comex gold futures were last up $6.10 an ounce at $1,355.50 while May Comex silver was last up $0.283 at $17.08 an ounce.