Gold, Silver Prices Propelled By Plunging Greenback, Rising Crude Oil
(Kitco News) - Gold and silver prices ended the U.S. day session sharply higher and near their daily highs Wednesday. Gold scored a 4.5-month high and silver notched a nine-week high. A sharply lower U.S. dollar index that slumped to a 3.5-year low today, and rallying crude oil prices that hit a 2.5-year high, are providing the precious metals bulls with rocket fuel. February Comex gold was last up $20.20 an ounce at $1,357.10. March Comex silver was last up $0.587 at $17.495 an ounce.
Helping sink the U.S. dollar index Wednesday were comments from U.S. Treasury Secretary Steven Mnuchin, who said in Davos, Switzerland that a weaker U.S. dollar is beneficial for the U.S. economy.
Some upbeat economic data coming out of the European Union Wednesday helped to lift the Euro currency to a more-than-two-year high.
Meantime, Nymex crude oil prices are were higher, above $65.00 a barrel. The rally in the oil market is also an underlying bullish element for the entire raw commodity sector.
Technically, February gold futures prices closed near the session high today. The gold bulls have the firm overall near-term technical advantage and gained more power today, 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 $1,330.00. First resistance is seen at today’s high of $1,354.90 and then at $1,360.00. First support is seen at $1,345.00 and then at today’s low of $1,339.10. Wyckoff's Market Rating: 7.0
March silver futures prices closed near the session high today. The silver bulls have quickly regained their overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing 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 this week’s low of $16.735. First resistance is seen at the October high of $17.59 and then at $17.75. Next support is seen at $17.32 and then at $17.00. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed up 1,135 points at 322.45 cents today. Prices closed nearer the session high and took back all of Tuesday’s big losses, and then some. The key outside markets were bullish for copper today as the U.S. dollar index was sharply lower and hit a 3.5-year low, while crude oil prices were higher and hit a 2.5-year high today. The copper bulls 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 of 332.20 cents. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of 310.80 cents. First resistance is seen at today’s high of 324.25 cents and then at 327.50 cents. First support is seen at 320.00 cents and then at 317.50 cents. Wyckoff's Market Rating: 7.0.