Gold Hits 2-Mo. High On Safe-Haven Demand Amid Trump Uncertainty
Monday January 23, 2017 08:19
(Kitco News) - Gold prices are moderately higher and have hit a two-month peak in early U.S. trading Monday. The yellow metal is supported in part on safe-haven demand and a recently down-trending U.S. dollar index. February Comex gold was last up $7.50 an ounce at $1,212.50. March Comex silver was last up $0.113 at $17.14 an ounce.
The world marketplace is still anticipating moves from the new Trump administration on this first full week of his U.S. presidency. Trump has promised fast action on many fronts and that has traders and investors still a bit apprehensive, which is bullish for safe-haven gold.
The U.S. dollar index is weaker to start the new trading week. There are some early technical clues that the dollar index has put in a market top. Prices have been trending lower for three weeks.
The other key “outside market” on Monday sees Nymex crude oil prices trading weaker. OPEC and Russian oil officials said Sunday they are holding to their stated plans to reduce their collective crude oil output. However, there remains stiff technical chart resistance just above present crude oil prices.
There is no major U.S. economic data due for release Monday.
(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)
Technically, February gold futures bulls and bears are on a level overall near-term technical playing field. Prices are in a five-week-old uptrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,236.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,175.00. First resistance is seen at the overnight high of $1,219.40 and then at $1,225.00. First support is seen at $1,200.00 and then at $1,195.40. Wyckoff’s Market Rating: 5.0
March silver bears still have the overall near-term technical advantage, but the bulls have momentum on their side as prices have been trending higher for four weeks. Silver bulls’ next upside price breakout objective is closing futures 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 $16.50. First resistance is seen at last week’s high of $17.36 and then at $17.50. Next support is seen at $17.00 and then at $16.84. Wyckoff's Market Rating: 4.0.