Gold futures prices finished pit trade Thursday higher on Short covering and bargain-hunting after the strong selling pressure that took prices to an 11-wk low Wednesday.

Higher Crude Oil prices boosted the precious metals Bulls, but a higher USD index Thursday limited the upside.

Jun Gold last traded + 7.20 at 1,628.00 oz.

Spot Gold was last quoted + 16.60 at 1,630.00 oz.

May Comex Silver last traded + 0.636 at 31.68 oz.

The precious metals markets are working to recover from strong downside price action Tuesday and Wednesday that produced fresh near-term technical damage in Gold and Silver. The Bulls have work to do in the near term in both markets.

The European Union (EU) sovereign debt crisis rose up again this week as Spanish and Italian bond yields rose significantly, pressuring the Euro currency and boost the USD index Thursday.

Do not be surprised if the EU debt crisis is the focus again next week. The questions on traders' minds is whether Gold would act like a risk asset and be pressured by the situation, or if Gold will see fresh safe-haven demand on any escalation in the EU debt crisis.

The USD index traded higher Thursday and hit a fresh 3 wk high on more Short covering due to the Dollar-positive implications of no further quantitative easing (QE) from the US Fed.

The stronger Greenback is a Bearish underlying factor for the precious metals.

Crude Oil prices were up on Thursday after falling to a 7-wk low Wednesday. The weaker near-term technical posture of the Crude Oil market is also a negative for Gold and Silver.

WTI Crude Oil last traded at 103.27 + 1.80 (1.77)

Traders are anticipating what some are calling the most important US economic report of the month Friday morning; the US employment report.

The London PM Gold fixing was 1,621.00 vs. the prior PM fixing of 1,676.25.

The US markets are closed for Good Friday.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels. Read the Terms of Service