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Gold prices down as risk appetite remains robust

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) - Save-haven gold prices are weaker in early U.S. futures trading Monday. Upbeat trader and investor attitudes are working against the precious metals markets to start the trading week. February gold futures were last down $4.90 an ounce at 1,555.50. March Comex silver prices were last down $0.05 at $18.055 an ounce.

Asian and European stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Trader and investor risk appetite is more robust to start the trading week, as the U.S. stock indexes hover close to last week’s record highs.

The U.S.-Iran conflicted has, at least for the time being, died down and the U.S. and China are this week set to sign a partial trade deal, which is likely to stimulate global economic growth in 2020.

The marketplace is keeping an eye on major protesting in Iran following the admission from the Iranian government that its military mistakenly shot down a passenger airliner last week.

The key outside markets today see crude oil prices near steady and trading around $59.00 a barrel. The U.S. dollar index is modestly up early today.

U.S. economic data due for release Monday is light and includes the employment trends index and the monthly Treasury budget statement.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the firm overall near-term technical advantage, but the January spike high is strong chart resistance to overcome. A price uptrend is still in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,590.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,530.00. First resistance is seen at the overnight high of $1,563.10 and then at the September high of $1,571.70. First support is seen at the overnight low of $1,547.00 and then at last week’s low of $1,541.00. Wyckoff's Market Rating: 7.0.

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls still have the overall near-term technical advantage but a five-week-old price uptrend is in jeopardy. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $18.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at $18.225 and then at $18.55. Next support is seen at the January low of $17.815 and then at $17.50. Wyckoff's Market Rating: 6.0.

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.