Gold price up, at 3-week high, as bulls gain momentum

(Kitco News) - Gold prices are modestly up and hit a three-week high in early U.S. trading Thursday. The yellow metal’s near-term technical posture has improved recently, which is inviting the shorter-term futures traders to play the long side of the market. A fading U.S. dollar index this week is also favoring the precious metals market bulls. June gold futures were last up $6.20 at $1,748.00 and May Comex silver was last up $0.173 at $25.42 an ounce.

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. The Dow and S&P 500 indexes have hit record highs this week. Traders and investors continue to exhibit a little risk aversion and that is boosting the equity markets but continues to constrain safe-haven gold and silver.

The Wednesday afternoon release of the minutes of the last Federal Reserve Open Market Committee (FOMC) meeting that took place in March showed no surprises and the takeaway was that the Fed will keep its monetary policy very accommodative for some time to come. Federal Reserve Chairman Jerome Powell is scheduled to speak Thursday at midday at an International Monetary Fund event.