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Gold prices at 2-mo. high; bulls head into 2020 with momentum

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 higher in early U.S. futures trading Tuesday, with gold scoring a two-month high and silver a seven-week high. Both metals are poised to close out December at technically bullish monthly high closes on this last day of the month and the year. A slumping greenback on the world foreign exchange market is now in focus for precious metals market bulls. February gold futures were last up $5.00 an ounce at 1,523.60. March Comex silver prices were last down $0.054 at $18.065 an ounce.

Asian stock indexes were mostly firmer overnight, while European stock indexes mixed to lower in quieter trading. The U.S. stock indexes are also pointed toward slightly higher openings when the New York day session begins, on this last trading day of 2019. Many U.S. markets close early today for the New Year’s holiday on Wednesday, when most global markets are closed.

Trader and investor attitudes remain upbeat going into 2020, due in large part to the world’s two largest economies, the U.S. and China, seeing a thaw in the more-than-two-year-old trade war that has slowed global economic growth. Most believe a partial trade deal will be signed in January.

A feature in a generally quiet, holiday marketplace the past few days has been many currencies rallying significantly against the U.S. dollar, including the Swiss franc, Euro currency, Japanese yen, Canadian dollar and Australian dollar. The U.S. dollar index hit a five-month low overnight and is poised to close at a technically bearish monthly low close today, which would suggest more downside price pressure for the greenback in early January, or longer. This is a bullish development for the raw commodity sector, as most raw commodities are priced in U.S. dollars on the world market.

The other key “outside market” today sees Nymex crude oil prices lower and trading around $61.00 a barrel.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the U.S. house price index, the Case-Shiller home index, and the consumer confidence index.

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 $1,550.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,500.00. First resistance is seen at the overnight high of $1,529.00 and then at $1,532.40. First support is seen at the overnight low of $1,517.50 and then at Monday’s low of $1,513.50. 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 $18.20 and then at $18.25. Next support is seen at Monday’s low of $17.83 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.