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Gold prices at 7-week highs, bulls have power

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 slightly higher and hit another seven-week highs in early U.S. futures trading Friday. Bullish technicals and notions of better consumer demand for precious metals in the coming new year are driving prices north. February gold futures were last up $0.70 an ounce at 1,515.10. March Comex silver prices were last down $0.08 at $17.91 an ounce.

Asian and European stock indexes were mostly up in overnight trading. The U.S. stock indexes are pointed toward higher openings and at their record highs when the New York day session begins. The safe-haven metals have been very resilient in the face of the competing asset class of stocks being in rally mode the past several weeks.

There has been little markets-moving news in the global marketplace this holiday week. The past several weeks have seen the geopolitical front quiet, which has diminished trader and investor worries and uncertainties, and has allowed world stock markets to continue to drift higher, with some stock indexes, including those in the U.S., hitting record highs. This lull won’t go on indefinitely and veteran market watchers are pondering the next major event to disrupt the calm.

The key “outside markets” today see the U.S. dollar index lower. Meantime, Nymex crude oil prices are slightly up and hit a seven-week high overnight, trading around $61.90 a barrel.

U.S. economic data due for release Friday is light and includes the weekly DOE liquid energy stocks report.

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 $1,518.70 and then at $1,525.00. First support is seen at the overnight low of $1,512.10 and then at Thursday’s low of $1,502.10. 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 this week’s high of $18.10 and then at $18.25. Next support is seen at Thursday’s 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.