(Kitco News) – Gold prices ended the U.S. day session solidly higher and scored another three-month high Wednesday. Once again, safe-haven and chart-based buying supported the yellow metal amid a still-uneasy world marketplace. Gold bulls also have building technical momentum on their side. Silver bulls got in gear today, also, and pushed prices to a fresh three-month high. April Comex gold was last up $16.20 at $1,143.50 an ounce. March Comex silver was last up $0.456 at $14.745 an ounce.

Gold prices were just slightly higher in late-morning dealings when a weaker-than-expected U.S. ISM non-manufacturing report was released, which gave the yellow metal a boost. The weaker ISM report also helped propel the U.S. dollar index sharply lower and put downside pressure on U.S. stock indexes, which in turn fueled more buying interest in gold. The other key “outside market” on Wednesday saw crude oil prices trade solidly higher, which also benefited the precious metals markets on this day.

Other U.S. economic data out showed the January ADP national employment report with a jobs rise of 205,000. This was a bit above market expectations but had little impact on the markets. The marketplace is awaiting Friday morning’s U.S. employment report for January. The key non-farms payroll number is expected to be up 185,000 following a strong rise of 292,000 in December.

Asian and European stock markets followed the lead of the U.S. stock indexes’ downside price action Tuesday and traded lower overnight. The world stock markets remain shaky and continue to closely follow the crude oil market.

Also unnerving traders and investors Wednesday were rumors that some big European banks may be in serious financial trouble.

Technically, February gold futures prices closed nearer the session high. Prices are in a choppy six-week-old uptrend and the bulls have technical momentum on their side. Bears still have the slight overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,150.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of 1,115.30. First resistance is seen at today’s high of $1,143.00 and then at $1,150.00. First support is seen at $1,130.00 and then at today’s low of $1,124.80. Wyckoff’s Market Rating: 4.5

March silver futures prices closed nearer the session high and hit a three-month high today. While the silver market bears still have the overall near-term technical advantage, recent price action has been bullish, including prices now being in a three-week-old uptrend on the daily bar chart. A bullish “rounding-bottom” reversal pattern has also formed on the daily chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.07. First resistance is seen at today’s high of $14.765 and then at $15.00. Next support is seen at $14.50 and then at today’s low of $14.27. Wyckoff’s Market Rating: 4.0.

March N.Y. copper closed up 415 points at 209.70 cents today. Prices closed nearer the session high and hit a four-week high today. Prices also scored a bullish “outside day” up on the daily bar chart today. The key “outside markets” were bullish for copper today as the U.S. dollar index was sharply lower and crude oil prices were solidly higher. The copper bears still have the overall near-term technical advantage. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at 215.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the contract low of 193.55 cents. First resistance is seen at today’s high of 210.10 cents and then at 212.50 cents. First support is seen at 207.50 cents and then at 205.00 cents. Wyckoff’s Market Rating: 3.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff