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Gold, Silver Prices Poised To End Week On Strong Note

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(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Friday. The bulls have so far had a very good week. If gold and silver can produce technically bullish weekly high closes Friday, then such would suggest near-term market bottoms are in place. February Comex gold was last up $5.80 an ounce at $1,262.90. March Comex silver was last up $0.121 at $16.06 an ounce.

World stock markets were mostly lower overnight. There are now concerns a few Republican U.S. senators are balking at the new tax-reform legislation, after reports earlier this week said a compromise had been reached on the bill. Many market watchers would argue the recent world stock market rallies were based in large part on ideas of lower U.S. corporate taxes. Now with a bit more uncertainty on the eventual U.S. tax-reform bill becoming law, bullish traders and investors are wavering a bit. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

In overnight news, Russia’s central bank cut its main interest rate by 0.5%. The move boosted the Russian ruble.

In other news, Bank of Canada governor Stephen Poloz on Thursday compared buying bitcoin as an investment vehicle to gambling. One analyst said Poloz’s comments were a direct warning to bitcoin buyers.

The U.S. dollar index is slightly lower in early U.S. trading. The other key “outside market” sees Nymex crude oil futures prices slightly higher.

U.S. economic data due for release Friday includes the Empire State manufacturing survey, industrial production and capacity utilization, and Treasury international capital data.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bears still have the overall near-term technical advantage. However, price gains to end the week, including a technically bullish weekly high close on Friday, would suggest a market bottom is in place. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,280.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,225.00. First support is seen at the overnight low of $1,255.20 and then at $1,250.00. First resistance is seen at 1,267.00 and then at $1,275.00. Wyckoff’s Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver bears still have the overall near-term technical advantage. However, more price gains to end the week, including a technically bullish weekly high close on Friday, would suggest a market bottom is in place. The next upside price breakout objective is closing futures prices above solid technical resistance at $16.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the July low of $15.225. First resistance is seen at this week’s high of $16.18 and then at $16.25. Next support is seen at today’s low of $15.915 and then at $15.75. Wyckoff's Market Rating: 3.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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