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Gold, silver prices up; focus on better consumer demand

Kitco News

(Kitco News) - Gold and silver prices are moderately higher in early U.S. futures trading Friday. The precious metals market bulls are presently focusing on better global economic prospects in 2020 igniting better consumer demand for the metals. The safe-haven metals are faring well despite keener risk appetite that sees the U.S. stock indexes at record highs and a world geopolitical scene that is presently quiet. February gold futures were last up $8.40 an ounce at 1,558.80. March Comex silver prices were last up $0.146 at $18.085 an ounce.

Asian and European stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward higher openings and at record highs again when the New York day session begins. Trader and investor risk appetite remains robust amid a quieter geopolitical front. Given the low interest rate environment at present, and no signs of inflation becoming problematic any time soon, many investors reckon the only game in town is and will be buying shares. However, veteran traders are realizing that a whole lot of bullish stock market traders are now on one side of the boat. That situation may not last long.

In overnight news China, the world’s second-largest economy, had its worst annual GDP growth pace in 29 years in 2019, at 6.1%. China’s industrial production was up 6.9% in December, year-on-year, which did beat expectations. All in all, the marketplace deemed the data as more upbeat because China’s economy is picking up speed from what was seen a few months ago.

Meantime, the Euro zone consumer price index was reported up 0.3% in December from November and up 1.3%, year-on-year. Those numbers were in line with expectations but still underscore the very low inflationary environment in the major economies.

The markets are so far paying very little attention to the impeachment process of President Trump. The U.S. Senate is set for Trump’s trial, likely starting in the next couple weeks.

The key outside markets today see crude oil prices slightly up and trading around $58.75 a barrel. The U.S. dollar index is higher early today.

U.S. economic data due for release Friday includes new residential construction, industrial production and capacity utilization and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage, but the January spike high is still 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 the September high of $1,571.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,525.00. First resistance is seen at this week’s high of $1,563.10 and then at $1,571.70. First support is seen at $1,550.00 and then at $1,541.00. Wyckoff's Market Rating: 6.5.

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the slight overall near-term technical advantage. 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 this week’s high of $18.13 and then at $18.25. Next support is seen at today’s low of $17.905 and then at this week’s low of $17.69. Wyckoff's Market Rating: 5.5.

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.