Gold, Silver Boosted By Depreciating U.S. Dollar, Geopolitics
(Kitco News) - Gold prices ended the U.S. day session moderately up and hit a more-than-three-month high Tuesday. Silver made slight gains and hit a five-week high. A slumping U.S. dollar index that hit a better-than-three-month low today is a bullish element for the precious metals. Gold and silver markets also saw safe-haven demand come from heightened geopolitical risks. February Comex gold was last up $6.20 an ounce at $1,315.60. March Comex silver was last up $0.07 at $17.21 an ounce.
A feature in the marketplace early this week are rising tensions in Iran as demonstrators in that country are demanding an overthrow of the ruling government. There has been a violent crackdown on the demonstrators by the Iranian government. U.S. President Donald Trump has tweeted that he supports the demonstrators, which is a dramatic shift from the Obama administration that was much more low key on such matters. If this situations deteriorates further, look for more safe-haven demand for gold and silver.
North Korea has made an overture to South Korea for negotiations, but is also maintaining it plans to ramp up its production of nuclear weapons, including leader Kim Jong Un reportedly saying he as a nuclear button on his desk. As the Winter Olympics in South Korea approach, don’t be surprised if North Korea tries to play the close-by event into its favor.
The other key outside market on Tuesday saw Nymex crude oil prices slightly weaker in afternoon trading, after hitting a 2.5-year high above $60.00 a barrel overnight. A supply disruption in the North Sea and the Iran demonstrations are supporting the oil market. The recent rally in oil prices is bullish for the precious metals and the entire raw commodity sector.
Technically, February gold futures prices closed nearer the session high today. The bulls have the overall near-term technical advantage, amid a steep three-week-old uptrend being in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,340.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,280.00. First resistance is seen at today’s high of $1,316.20 and then at $1,220.00. First support is seen at today’s low of $1,304.60 and then at $1,300.00. Wyckoff's Market Rating: 6.0
March silver futures prices closed nearer the session high and hit a five-week high today. The bulls have gained the slight overall near-term technical advantage. Prices are in a steep three-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.435. First resistance is seen at $17.25 and then at $17.50. Next support is seen at today’s low of $16.985 and then at $16.75. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed down 215 points at 327.90 cents today. Prices closed nearer the session low on profit taking after hitting a contract high last week. The copper bulls still have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 340.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 310.00 cents. First resistance is seen at the contract high of 332.20 cents and then at 335.00 cents. First support is seen at 324.85 cents and then at 322.00 cents. Wyckoff's Market Rating: 8.0.