Gold sees solid price gains on bullish outside market forces

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Gold sees solid price gains on bullish outside market forces gold silver

- Gold and silver prices are higher, with gold solidly up and hitting a six-week high in early U.S. trading Friday. A weaker U.S. dollar index, firmer crude oil prices and a dip in U.S. Treasury yields are friendly outside market elements for the metals markets on this day. The technical charts are also bullish for gold and silver, which is inviting more speculators to the long sides of these markets. April gold was last up $21.50 at $1,944.40 and May silver was up $0.383 at $22.08.

In overnight news, China's central bank eased its monetary policy by lowering its reserve requirement ratio for banks by 0.25%. This follows a move by the European Central Bank on Thursday to raise its main interest rate by 0.5%. The Federal Reserve's FOMC meets next week and there is a debate in the marketplace regarding whether the Fed will raise its main interest rate by 25 basis points, or stand pat amid the U.S. and European banking crises. The rate hike by the ECB makes a 0.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are higher and trading around $69.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.541%.

 

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