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Market Preview: Gold, Silver and Crude Oil

Gold futures prices are trading modestly higher in early US trading Thursday. A lower USD index prompted some short covering and bargain hunting in Gold and Silver.

Traders wait for Key economic data due out for price direction.

Apr Comex Gold last traded + 6.00 at 1,580.90 oz.

Spot Gold was last quoted -2.40 at 1,582.50 oz.

May Comex Silver last traded +0.087 at 28.89 oz

The EUR and European stock markets were boosted Thursday by a successful Spanish bond auction that saw good investor demand and lower yields.

The European Central Bank held its monthly meeting Thursday and announced no major changes to its monetary policy. Traders will closely scrutinize ECB chief Mario Draghi’s remarks at his press conference following the meeting.

The Bank of England’s monthly meeting Thursday also saw no change in interest rates or monetary policy, as expected. The Bank of Japan also held a policy meeting Thursday that saw no major changes.

The most important US economic report of the month, the employment situation report for February, is due Friday morning.

The Key non-farm payroll number is expected to come in at up 157,000, while the unemployment rate is forecast at 7.8%. Expect active trading in Gold and Silver following Friday morning’s jobs report.

China issues its monthly trade data on Friday, and that data will be in focus.

Reports this week, investor demand for physical Gold increased recently at the lower price levels.

The USD index is lower Thursday morning, on profit taking from recent gains that pushed the index to a 6 month high this week. The USD Bulls have technical strength suggesting the USD index can continue to trend higher in the near term, a Bearish underlying factor for Gold and Silver.

Nymex Crude Oil futures prices firmed early Thursday. The Crude Oil Bears have the near-term technical advantage as prices hold near a 9 week low, also a negative for Gold and Silver prices.

Brent Crude is trading down.

Crude Oil (BRENT) 110.57 -0.49 (-0.44%)

US economic data due for release Thursday includes the weekly jobless claims report, the Challenger job cuts report, the US trade report, and ICSC chain store sales trends.

The London AM Gold fixing is 1,580.50 Vs the prior London PM fixing at 1,574.00.