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Gold Prices Power To 10-Mo. Peak; More Upside Likely

Kitco News

(Kitco News) - Gold prices are solidly up and hit a 10-month high in early U.S. trading Tuesday. Technical buying and ideas of easier monetary policies being put in place by the world’s major central banks are boosting the precious metals markets. The gold and silver bulls are especially impressed by the ability of prices to rally in the face of a strong U.S. dollar index. There are no early chart clues gold’s push higher will end anytime soon. April gold futures were last up $12.70 an ounce at $1,334.90. March Comex silver was last up $0.087 at $15.83 an ounce.

The Federal Reserve’s FOMC minutes are due out Wednesday afternoon and will be closely scrutinized by traders and investors. The recent change in Fed policy stance to one of more accommodative monetary conditions has been a significantly bullish underlying factor for the metals markets.

Asian and European stock markets were mixed to lower overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins, following a three-day U.S. holiday weekend. Traders and investors are not as upbeat this week as last, even though there are no major fresh news developments in the markets.

The ongoing U.S.-China trade talks taking place this week in Washington, D.C. will be closely monitored by the world marketplace. Ideas are mixed on a final deal being reached by the U.S.-imposed early-March deadline.

The U.K. Brexit saga continues to play out, with no deal in place as the late-March deadline approaches for that country to leave the European Union.

Slowing Chinese economic growth is also a bit worrisome for the marketplace.

The key outside markets today see the U.S. dollar index near steady and seeing a mild corrective pullback after hitting a two-month high on Friday. Nymex crude oil prices are higher, hit a three-month high and are trading just above $56.00 a barrel. Prices are in a good uptrend from the Dec. 24 low of just above $42.50 a barrel.

U.S. economic reports due for release Tuesday is light and includes the NAHB housing market index.

Live 24 hours gold chart [Kitco Inc.]

Technically, the April gold bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the February low of $1,304.70. First resistance is seen at today’s high of $1,335.30 and then at $1,340.00. First support is seen at today’s low of $1,323.80 and then at $1,320.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $16.20 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at the overnight high of $15.845 and then at the early-January high of $15.955. Next support is seen at the overnight low of $15.715 and then at $15.50. Wyckoff's Market Rating: 6.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.