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Gold prices modestly up; bulls continue to show resolve

Kitco News

Editor's Note: 2020 is expected to be another year of significant uncertainty and turmoil. But the question is what asset will emerge the victor when the dust settles from the global trade war, Brexit, recession threats, negative bond yields. It’s a showdown of global proportions, so don’t miss all our exclusive coverage on how these factors could impact your 2020 investment decisions.

(Kitco News) - Gold prices are holding mild gains in early U.S. trading Tuesday, despite U.S. and some European stock indexes hovering near record highs amid keener risk appetite in the world marketplace. It appears the psychology of safe-haven metals traders may be changing from one of lower geopolitical risks being bearish, to one of a better global economic climate due to the partial U.S.-China trade deal being bullish due to likely increasing demand for metals. The recent depreciation of the U.S. dollar on the world foreign exchange market is also bullish for the metals markets. February gold futures were last up $2.70 an ounce at 1,483.20. March Comex silver prices were last up $0.007 at $17.12 an ounce.

Asian stock indexes were mostly higher overnight, while European shares were mixed to weaker. The U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins. U.S. and U.K. stock indexes hit record highs Monday amid keener risk appetite in the global marketplace following  news of a partial U.S.-China trade agreement.

European shares were rattled Tuesday on news U.K. Prime Minister Boris Johnson intends to introduce legislation to bar extension of Brexit talks beyond one year, which many believe is not enough time for a “soft” Brexit. The British pound also fell on the news.

The key “outside markets” today see the U.S. dollar index firmer. Meantime, Nymex crude oil prices are slightly up and trading around $60.50 a barrel.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, new residential construction, industrial production and capacity utilization, and the IDB/TIPP economic optimism index.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls and bears are on a level overall near-term technical playing field amid choppy and sideways trading recently. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,453.10. First resistance is seen at $1,485.00 and then at the December high of $1,491.60. First support is seen at Monday’s low of $1,477.40 and then at $1,470.00. Wyckoff's Market Rating: 5.0.

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bears have the overall near-term technical advantage amid a more-than-three-month-old downtrend in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $17.415 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at last week’s high of $17.185 and then at the December high of $17.415. Next support is seen at Monday’s low of $16.955 and then at $16.82. Wyckoff's Market Rating: 4.5.

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.