Gold Prices Up On Technical Buying
(Kitco News) - Gold prices are moderately higher in early-afternoon U.S. trading Wednesday. The yellow metal has been trading sideways in quieter fashion for several sessions, which is not bearish. The near-term technical posture for gold remains bullish, which continues to invite speculative buyers who look at the charts. February gold futures were last up $5.60 an ounce at $1,294.00. March Comex silver was up $0.01 at $15.63 an ounce.
European and Asian stock markets were mixed overnight, as traders in Europe did not appear too concerned about the U.K. Parliament voting down on Tuesday evening Prime Minister Theresa May’s Brexit plan. The rejection was expected by the marketplace. May faced a no confidence vote Wednesday evening, but she was expected to survive it. Some gold market watchers said today’s strength in gold was due in part to safe-haven buying due to Brexit uncertainty.
The important outside markets today saw the U.S. dollar index near steady following strong gains on Tuesday. Meantime, Nymex crude oil prices are weaker and trading just below $52.00 a barrel. Brent crude oil futures are presently trading just above $60.00 a barrel.
Several major U.S. economic reports have been postponed recently because of the continuing U.S. government partial shutdown, including retail sales originally scheduled for Wednesday. Metals traders will examine the Wednesday afternoon beige book report from the Federal Reserve.
Technically, February gold futures bulls have the overall near-term technical advantage. A two-month-old price uptrend is still in place on the daily bar chart. The recent sideways pause is not bearish. 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 this week’s high of $1,296.60 and then at the January high of $1,300.40. First support is seen at this week’s low of $1,286.50 and then at last week’s low of $1,280.20. Wyckoff's Market Rating: 6.5
March silver futures prices closed near mid-range and hit a two-week low today. The silver bulls have the overall near-term technical advantage. A two-month-old price uptrend is in place on the daily bar chart. A bullish pennant pattern has also formed on the daily 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 this week’s high of $15.735 and then at $15.88. Next support is seen at $15.50 and then at $15.385. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed up 370 points at 267.15 cents today. Prices closed nearer the session high on short covering. 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 last week’s high of 268.65 cents and then at 270.00 cents. First support is seen at today’s low of 2.6360 cents and then at this week’s low of 261.65 cents. Wyckoff's Market Rating: 2.5.