Gold, silver prices at 6-week highs; raw commodity bulls waking up
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 and silver prices are moderately higher and at six-week highs in early U.S. futures trading Tuesday. Heading into the holidays and the end of the year, the metals bulls are much more confident as the technical postures for gold and silver have turned positive. Importantly, other raw commodity markets are perking up, including the grains, softs markets and crude oil. Such suggests traders and investors are expecting better global economic growth in 2020. That would mean increased demand for raw commodities, including the precious metals. February gold futures were last up $5.60 an ounce at 1,494.30. March Comex silver prices were last up $0.156 at $17.655 an ounce.
Asian and European stock indexes were mostly slightly up in more quiet trading overnight. The U.S. stock indexes are pointed toward slightly higher openings and at or near their record highs when the New York day session begins. Traders and investors are gearing up for the upcoming holidays, including squaring their books as the end of the year approaches, so trading interest and volumes are likely to be lighter the next week or so. Markets are closed Wednesday for the Christmas holiday and many, including the U.S. stock markets, close early today.
The geopolitical front has been quieter for many weeks, including U.S.-China trade tensions relaxing the past couple weeks, and that’s making for a “risk-on” trading environment that is boosting global equities. Notions of better global economic growth in the coming new year are also lifting raw commodity markets, with crude oil leading the way.
The key “outside markets” today see the U.S. dollar index higher. Meantime, Nymex crude oil prices are slightly up and trading around $60.65 a barrel after hitting a multi-month high last week.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, and the Richmond Fed business survey.
Technically, the gold bulls have the overall near-term technical advantage as a gentle price uptrend is now in place on the daily chart. 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 the overnight high of $1,496.90 and then at $1,500.00. First support is seen at the overnight low of $1,488.10 and then at Monday’s low of $1,481.20. Wyckoff's Market Rating: 6.0
March silver futures bulls also have the overall near-term technical advantage as a three-month-old downtrend on the daily bar chart has been negated. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $16.565. First resistance is seen at $17.75 and then at $18.00. Next support is seen at the overnight low of $17.425 and then at Monday’s low of $17.23. Wyckoff's Market Rating: 6.0.