Gold, Silver Boosted By Bullish Charts, Slumping U.S. Dollar
(Kitco News) - Gold and silver markets ended the U.S. day session with moderate gains and hit new four-week highs Wednesday. The precious metals bulls have technical momentum amid fledgling price uptrends on the daily charts, which are drawing in more chart-based buyers. A weaker U.S. dollar index that dropped to a four-week low today also helped out the precious metals bulls. February Comex gold was last up $4.40 an ounce at $1,291.90. March Comex silver was last up $0.161 at $16.765 an ounce.
It has been a quieter trading and news week so far, as many traders and investors are out during the holiday season. This is allowing technical considerations to have more daily influence on gold and silver prices, amid the lack of fresh fundamental news.
The other key outside markets on Wednesday saw Nymex crude oil prices a bit lower on profit taking after hitting a 2.5-year high on Tuesday. An oil pipeline explosion in Libya helped to fuel the rally in crude prices Tuesday. The rally in the crude oil market the past month has also aided the metals markets, along with many other raw commodity markets.
Technically, February gold futures bulls and bears are on a level overall near-term technical playing field, but the bulls 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 Wednesday’s low of $1,286.00 and then at this week’s low of $1,277.70. First resistance is seen at Wednesday’s high of 1,292.30 and then at $1,300.00. Wyckoff’s Market Rating: 5.0
March silver bulls and bears are now on a level overall near-term technical playing field, but the bulls have momentum on their side. 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 today’s high of $16.785 and then at $17.00. Next support is seen at today’s low of $16.555 and then at this week’s low of $16.365. Wyckoff's Market Rating: 5.0.