Gold Modestly Up; Bulls Keeping Technical Momentum
(Kitco News) - Gold prices are posting mild gains in early-afternoon U.S. trading Monday, supported by more chart-based buying as the near-term technical posture for the precious metal remains bullish. A lower U.S. dollar index today also worked in favor of the precious metals market bulls. February gold futures were last up $3.80 an ounce at $1,289.50. March Comex silver was down $0.031 at $15.76 an ounce.
Gold bulls were also impressed today by the ability of their metal to add some gains despite good follow-through buying in the U.S. stock market, following last Friday’s big gains.
Trader and investor attitudes are generally upbeat to start the trading week, due in part to a strong U.S. jobs report released last Friday. Federal Reserve Chairman Jerome Powell also made comments Friday that U.S. inflation levels are not problematic and that the Fed will be flexible in its monetary policy, which also assuaged the marketplace. The U.S. and China are holding face-to-face trade talks in China starting today, amid optimism the world’s two largest economies will make progress on their major trade dispute.
The U.S. government shutdown is into its third week now, but the matter is garnering less attention from the marketplace and is not a front-burner issue.
The key outside markets today see the U.S. dollar index lower. The USDX has been trending sideways to lower on the daily chart for three weeks. Meantime, Nymex crude oil prices are higher and trading just above $49.00 a barrel. There are early chart clues the oil market has bottomed out, but the bulls still have heavy lifting to do to suggest a price uptrend can be sustained.
Technically, February gold futures bulls have the firm overall near-term technical advantage. A seven-week-old price uptrend is 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 $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,260.00. First resistance is seen at today’s high of $1,297.00 and then at last week’s high of $1,300.40. First support is seen at today’s low of $1,284.10 and then at last week’s low of $1,278.10. Wyckoff's Market Rating: 6.5
March silver futures prices closed nearer the session low on a mild corrective pullback after hitting a five-month high on Friday. The silver bulls have the overall near-term technical advantage. A seven-week-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.25. First resistance is seen at last week’s high of $15.055 and then at $16.00. Next support is seen at $15.564 and then at $15.50. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed down 70 points at 264.05 cents today. Prices closed nearer the session low. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 275.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at today’s high of 265.95 cents and then at 268.00 cents. First support is seen at 262.50 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.0.