NEW YORK (Kitco News) -- Gold prices scored a nearly three-month high this week, with more safe-haven demand and technical buying featured, said Kitco Metals' senior technical analyst, Jim Wyckoff.
The yellow metal was trading near steady on Wednesday morning after gold saw a mild downside technical correction overnight. This comes following recent gains on Tuesday that pushed prices to a nearly three-month high, Wyckoff explained.
"The safe-haven metal still has some worldwide trader and investor anxiety working in its favor," Wyckoff said.
"The bulls have near-term momentum on their side," he said in an interview with Kitco News.
"While the gold bears still have the overall near-term technical advantage, prices are in a choppy five-week-old uptrend and the bulls have technical momentum on their side. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,150.00," Wyckoff explained.
On the silver front, the market bears still have the overall near-term technical advantage, said Wyckoff. "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 $14.00," Wyckoff says.
Gold investors will be watching the Federal Open Market Committee (FOMC) meeting that ends Wednesday afternoon with a statement, Wyckoff said.
"While no change in U.S. interest rates is expected at this meeting, the statement this afternoon will be very closely scrutinized. Many market watchers agree the world economies and financial markets have become less stable since the last FOMC meeting in mid-December," he added.