Gold, Silver Hit Multi-Month Highs Amid Eroding U.S. Dollar
(Kitco News) - Gold prices ended the U.S. day session with modest gains Tuesday and scored a four-month high in overnight action. Meantime, silver prices were slightly up and hit a two-month high overnight. The precious metals markets are being supported by a plunging U.S. dollar index and a soaring Euro currency. February Comex gold was last up $2.40 an ounce at $1,337.40. March Comex silver was last up $0.079 at $17.22 an ounce.
The key outside markets on Tuesday saw the U.S. dollar index lower and not far above Monday’s 3.5-year low. The greenback bears have the solid overall near-term technical advantage, to suggest more pressure in the near term. The Euro currency is being boosted by mostly upbeat economic data coming out of the European Union and on ideas the European Central Bank will begin to reel in its heretofore very loose monetary policy.
Meantime, Nymex crude oil prices were weaker on some mild profit taking Tuesday after hitting a three-year high of $64.89 a barrel overnight. The recent rally in oil prices has been a bullish development for the raw commodity sector, including the precious metals.
U.S. data due for release Tuesday was light. However, the report pace picks up on Wednesday.
World stock markets were mostly higher Tuesday, boosted by increasing optimism on global economic growth. Along with that specter come tighter monetary policies from the world’s major central banks. U.S. stock indexes hit new record highs again today. The ability of safe-haven gold to rally when its competing asset class of equities is seeing record highs is impressive for the yellow metal.
Bitcoin prices plunged again today and hit a four-week low. The eroding crypto currency is also working in favor of the gold market, even if only from a psychological perspective.
Technically, February gold futures prices closed nearer the session low today. The bulls have the firm overall near-term technical advantage, amid a five-week-old uptrend 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 the September high of $1,365.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,345.00 and then at $1,350.00. First support is seen at today’s low of $1,332.10 and then at the $1,325.00. Wyckoff's Market Rating: 6.5
March silver futures prices closed nearer the session high today. Prices also scored a bullish “outside day” up on the daily bar chart. The bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $17.59 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 today’s high of $17.45 and then at $17.59. Next support is seen at $17.00 and then at today’s low of $16.80. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed down 5 points at 321.80 cents today. Prices closed nearer the session low and hit a three-week low today. The copper bulls still have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high if 332.20 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 325.00 cents and then at 327.45 cents. First support is seen at today’s low of 318.35 cents and then at 315.00 cents. Wyckoff's Market Rating: 6.5.