Gold bulls not faring too badly amid surging stock markets
(Kitco News) - Gold prices are near steady and silver prices are slightly up in midday U.S. futures trading Wednesday. The safe-haven metals continue to be hamstrung by mostly upbeat trader and investor attitudes at mid-week, as evidenced by U.S. stock indexes hitting more record highs today. Still, it can be argued the gold and silver bulls are not getting beat up too badly amid the better risk appetite in the marketplace at present. February gold futures were last up $0.10 an ounce at 1,558.00. March Comex silver prices were last up $0.047 at $17.855 an ounce.
Focus so far this week is on the World Economic Forum annual meeting in Davos, Switzerland. President Trump, in an interview with CNBC, said U.S. economic growth has been hamstrung by the Federal Reserve keeping interest rates too high, and by the grounded Boeing jetliner situation. Trump also threatened new trade tariffs on European countries that manufacture automobiles.
The global marketplace is keeping an eye on China health officials battling a coronavirus that has killed at least six with hundreds more afflicted, and is rapidly spreading. The virus has been detected in the U.S. Still, the matter is not being deemed serious for the health of the global economy.
The markets are so far paying very little attention to the impeachment of President Trump. The U.S. Senate this week is holding hold Trump’s trial.
Technically, February gold futures bulls have the overall near-term technical advantage as a two-plus-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 $1,590.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the January low of $1,519.70. First resistance is seen at this week’s high of $1,568.80 and then at $1,575.00. First support is seen at today’s low of $1,550.00 and then at 1,541.00. Wyckoff's Market Rating: 6.5
March silver futures bulls and bears are on a level overall near-term technical playing field. 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 $18.00 and then at last week’s high of $18.185. Next support is seen at this week’s low of $17.62 and then at $17.50. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed down 255 points at 276.80 cents today. Prices closed nearer the session low today on more heavy profit taking after hitting an eight-month high last week. The copper bulls still have the overall near-term technical advantage but are fading fast and need to show fresh power soon. A four-month-old uptrend on the daily bar chart is now in jeopardy. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 288.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 270.00 cents. First resistance is seen at today’s high of 280.50 cents and 282.50 cents. First support is seen at today’s low of 276.35 cents and then at 275.00 cents. Wyckoff's Market Rating: 6.5.