Gold, silver weaker as global stock indexes in rally mode
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 and silver prices are weaker in midday U.S. futures trading Monday. Upbeat trader and investor attitudes are working against the precious metals markets to start the trading week. U.S. stock indexes are at or near record highs today, amid low risk aversion in the world marketplace at present. February gold futures were last down $9.70 an ounce at 1,550.40. March Comex silver prices were last down $0.10 at $18.01 an ounce.
Asian and European stock markets were mixed to firmer overnight. 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. Reports today said the U.S. is also going to drop China from its list of currency manipulators, in another sign of the thawing of U.S-China trade tensions.
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 weaker and trading around $58.40 a barrel. The U.S. dollar index is near steady at midday today.
Technically, February gold futures bulls have the overall near-term technical advantage as a two-month-old price uptrend in still place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,590.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,530.00. First resistance is seen at today’s high of $1,563.10 and then at the September high of $1,571.70. First support is seen at today’s low of $1,547.00 and then at last week’s low of 1,541.00. Wyckoff's Market Rating: 6.5
March silver futures bulls still have the overall near-term technical advantage but need to show fresh power soon to keep alive an uptrend on the daily bar chart. 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 $17.00. First resistance is seen at $18.225 and then at $18.75. Next support is seen at the January low of $17.815 and then at $17.50. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed up 445 points at 285.80 cents today. Prices closed nearer the session high and hit an eight-month high today. The copper bulls have the firm overall near-term technical advantage and gained fresh power today. A four-month-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at today’s high of 286.10 cents and 290.00 cents. First support is seen at 282.50 cents and then at 280.00 cents. Wyckoff's Market Rating: 7.0.