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Gold, Silver See Solid Gains, At 4-Wk Highs

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(Kitco News) - Gold and silver markets ended quiet, post-holiday trading sessions with good gains and scored four-week highs Tuesday. Early advances were extended and the metals closed near their daily highs as the key “outside markets” turned bullish on the day. The U.S. dollar index turned weaker during the U.S. session and crude oil prices posted solid gains and hit a 2.5-year high. February Comex gold was last up $9.50 an ounce at $1,288.30. March Comex silver was last up $0.171 at $16.615 an ounce.

There were no major news developments Tuesday or during the long Christmas holiday weekend, so many markets early this week are being driven by chart-based traders. With the near-term charts looking more bullish for gold and silver, the technical buyers are also stepping up.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls and bears are on a level overall near-term technical playing field, after last Friday’s bullish weekly high close and today’s good follow-through buying. Bulls do have momentum on their side. Prices are in a steep, two-week-old uptrend on the daily bar chart.  Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the December low of $1,238.30. First support is seen at Tuesday’s low of $1,277.70 and then at last Friday’s low of $1,268.40. First resistance is seen at 1,292.50 and then at $1,300.00. Wyckoff’s Market Rating: 5.0.

Live 24 hours silver chart [ Kitco Inc. ]

March silver bears still have the overall near-term technical advantage. However, recent gains suggest a market bottom is in place and the bulls also have momentum. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $16.75 and then at $17.00. Next support is seen at today’s low of $16.365 and then at $16.25. Wyckoff's Market Rating: 4.0.

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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