Gold, silver bulls out of the chute in good fashion to start 2020
(Kitco News) Gold and silver prices are modestly higher in midday U.S. futures trading Thursday, with gold hitting a new three-month high. With the new year under way and the charts looking the most positive they’ve been in months, look for some more technical-based buying from speculators in the coming days and weeks, including the big “fund” traders. A weakening U.S. dollar on the world foreign exchange market recently is also working in favor of the precious metals market bulls. February gold futures were last up $4.60 an ounce at 1,527.60. March Comex silver prices were last up $0.134 at $18.055 an ounce.
Trader and investor attitudes remain upbeat, due in large part to the world’s two largest economies, the U.S. and China, seeing a major thaw in the more-than-two-year-old trade war that has slowed global economic growth. A partial trade deal is set to be signed on January 15th.
China’s central bank eased its monetary policy on Wednesday by lowering its banks’ reserve requirement ratios, which will put more money into China’s financial system. That news also worked to boost world equity markets.
The was major protesting in Hong Kong to start the new year, with reports saying more than 400 civilians were arrested and police using pepper spray and water cannons. This matter could again become a front-burner issue for the marketplace, especially if mainland China gets more involved in quelling the protesters.
A feature in the marketplace during the holiday season has been many currencies rallying significantly against the U.S. dollar. The U.S. dollar index did rebound today from a five-month low hit earlier this week. The other key “outside market” today sees Nymex crude oil prices near steady and trading around $61.00 a barrel.
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 today’s high of $1,534.00 and then at $1,540.00. First support is seen at today’s low of $1,519.70 and then at this week’s low of $1,513.50. Wyckoff's Market Rating: 6.5
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 $18.20 and then at $18.25. Next support is seen at this week’s low of $17.83 and then at $17.50. Wyckoff's Market Rating: 6.5.