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Gold, silver bulls propel prices to 7-week highs

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 and silver prices are moderately higher and hit seven-week highs in early U.S. futures trading Thursday. Gold is holding above the key $1,500.00 level and silver prices have moved above $18.00. Bullish charts and ideas of better demand for precious metals in the coming new year are driving prices up, despite global equity markets that are also pushing higher. February gold futures were last up $6.10 an ounce at 1,511.00. March Comex silver prices were last up $0.182 at $18.035 an ounce.

Asian and European stock indexes were mixed to slightly up in quiet, holiday 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.

There is little markets-moving news in the global marketplace on the day after the Christmas holiday. The past several weeks have seen the geopolitical front quiet, which has squelched trader and investor worries and uncertainties and has allowed world stock markets to drift higher, with some stock indexes, including those in the U.S., hitting record highs. Veteran market watchers know the quiet trading atmosphere cannot go on indefinitely and are pondering the next event to upset the calm.

A feature in the markets this week is the rallying gold and silver markets. The safe-haven metals are rallying despite little risk aversion in markets. Gold bulls are focusing on better demand for precious metals in 2020, amid outlooks for increased global economic growth in the new year.

The key “outside markets” today see the U.S. dollar index slightly lower. Meantime, Nymex crude oil prices are near steady and hit a seven-week high overnight, trading around $61.15 a barrel.

U.S. economic data due for release Thursday includes the weekly MBA mortgage applications survey and weekly jobless claims.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage as an accelerating price uptrend is in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,527.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,480.00. First resistance is seen at the overnight high of $1,512.00 and then at $1,520.00. First support is seen at the overnight low of $1,502.10 and then at $1,500.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls also have the overall near-term technical advantage as a fledgling uptrend line is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at the overnight high of $18.10 and then at $18.25. Next support is seen at the overnight low of $17.81 and then at $17.50. 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.