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Gold Soars To 10-Mo. High; Powerful Bulls Looking For More Upside

Kitco News

(Kitco News) - Gold prices are strongly up and hit a 10-month high in early-afternoon U.S. trading Tuesday. Technical buying, some geopolitical uncertainties and ideas of easier monetary policies being put in place by the world’s major central banks are boosting the precious metals markets. A drop in the U.S. dollar index today, after holding mild gains overnight, is also working in favor the metals market bulls today. There are no early chart clues gold’s push higher will end anytime soon. Charts suggest the path of least resistance for prices will remain sideways to higher for at least the near term. April gold futures were last up $21.90 an ounce at $1,344.90. March Comex silver was last up $0.222 at $15.965 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.

Traders and investors are not quite as upbeat early this week as last week, 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. Maybe the marketplace is leaning just a bit more negative on a final trade deal being reached by the world’s two largest economies by early March.

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. That has European traders somewhat more unnerved at present.

Slowing Chinese economic growth is also worrisome for the world marketplace.

The other key outside market today sees Nymex crude oil prices higher and at a three-month high and 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.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices closed near the session high today. The bulls have the solid overall near-term technical advantage and gained more power today to suggest still more upside in the near term. A nearly three-month-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 $1,400.00. 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 $1,350.00 and then at $1,365.00. First support is seen at $1,331.10 and then at $1,320.00. Wyckoff's Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices closed near the session high and hit a two-week high. The silver bulls have the overall near-term technical advantage and gained fresh power today. Prices are in a two-month-old price uptrend 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 the January low of $15.195. First resistance is seen at $16.00 and then at $16.20. Next support is seen at today’s low of $15.715 and then at $15.50. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed up 745 points at 287.30 cents today. Prices closed near the session high and hit a 4.5-month high today. The copper bulls have the overall near-term technical advantage and gained more power today. Prices have been trending higher for seven weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 270.00 cents. First resistance is seen at today’s high of 287.80 cents and then at 290.00 cents. First support is seen at 2.8500 cents and then at 282.50 cents. Wyckoff's Market Rating: 6.0.

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.