Gold Gains As Traders "Buy The Dip"
(Kitco News) - Gold prices ended the U.S. day session moderately higher Tuesday, as some mid-morning selling pressure was quickly pounced on by bulls looking to buy the brief dip in prices.There has been no fresh, major fundamental news to drive the safe-haven metal higher early this week. However, the gold charts continue to look bullish, which is inviting technically related buyers. February Comex gold was last up $5.60 an ounce at $1,337.50. March Comex silver was last down $0.019 at $16.97 an ounce.
A slumping U.S. dollar index that fell to a more-than-three-year low Tuesday also worked in favor of the precious metals market bulls. The greenback looks set for more depreciation, which should continue to support the gold and silver markets.
The U.S. government reopened Tuesday after a three-day shutdown. U.S. lawmakers agreed on a temporary budget plan late Monday. That situation did not have a major impact on the world marketplace.
U.S. stock indexes set new record highs again Tuesday. The ability of gold prices to hold their own and even sustain an uptrend amid a major bull market run in the competing asset class of equities is an impressive element for the yellow metal.
Focus of the marketplace this week is on Davos, Switzerland and its World Economic Forum that began Tuesday. World government officials, corporate heads and other celebrities are at the yearly event to discuss economics and ways to make the world a better place. The highlight of the event will be a speech by U.S. President Trump.
The other key outside market on Tuesday saw Nymex crude oil prices higher and not far below last week’s more-than-three-year high. Rallying oil prices are also a bullish factor for the metals markets, and for the raw commodity sector, in general.
Technically, February gold futures prices closed nearer the session high today. The gold bulls have the overall near-term technical advantage, amid a six-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 $1,338.90 and then at last week’s high of $1,345.00. First support is seen at this week’s low of $1,328.00 and then at last week’s low of $1,324.30. Wyckoff's Market Rating: 6.5
March silver futures closed prices closed near mid-range and hit a three-week low today. The bulls have lost their overall near-term technical advantage amid recent choppy and sideways trading. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $17.45 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 $17.14 and then at $17.32. Next support is seen at today’s low of $16.735 and then at $16.60. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed down 835 points at 311.50 cents today. Prices closed near the session low and hit a five-week low today. The copper bulls still have the overall near-term technical advantage, but faded badly today, to suggest a market top is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at 315.00 cents and then at 318.00 cents. First support is seen at today’s low of 310.80 cents and then at 307.50 cents. Wyckoff's Market Rating: 6.0.