Make Kitco Your Homepage

After Gold Nears 3-Month High, Sets Sights on $1,150: Technical Expert

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.

February Comex gold was last down $3.20 at $1,117 an ounce. March Comex silver was last down $0.144 at $14.42 an ounce.

 “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.

By Daniela Cambone of Kitco News;
Follow me on Twitter @DanielaCambone



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 precious metal products, 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.
kitco news