Gold, silver bulls gaining upside momentum this week
(Kitco News) - Gold futures prices are moderately up and hit a three-week high in midday U.S. trading Tuesday. Silver prices are near steady at midday and also hit a three-week high. Gold and silver bulls have gained some technical momentum to suggest near-term market bottoms are in place. There is some keener risk aversion in the marketplace so far this week, which is prompting some safe-haven demand and perceived bargain hunting following recent losses in the two metals. February gold futures were last up $11.40 at $1,877.40 and March Comex silver was last down $0.019 at $24.775 an ounce.
U.S. stock indexes are mixed at midday. Key U.S. indexes have hit record highs just recently and are so far just seeing some normal profit taking in price uptrends. Traders and investor enthusiasm is being dented early this week as Covid-19 daily infections, hospitalizations and deaths hit a record on Monday. The marketplace worries the pandemic will again partially shut down U.S. businesses over the winter and cripple economic growth during that period. The downbeat attitudes come as vaccines are rolling out in the U.K. and coming soon in the U.S.
Also what looked to be promising progress on a U.S. government financial aid package for Americans impacted by the pandemic appears to have at least temporarily stalled out in Congress.
European traders/investors are also anxious regarding the lack of progress between the U.K. and the European union on a smooth Brexit for the U.K. The British pound has slumped this week on this matter.
The U.S. dollar index is modestly higher early today and seeing a corrective bounce after hitting a 2.5-year low last week. The other important outside market sees January Nymex crude oil futures prices a bit lower and trading around $45.65 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.93%.
Technically, February gold futures prices hit a three-week high today. The gold bulls and bears are back on a level overall near-term technical playing field but the bulls have upside momentum. A downtrend on the daily chart was negated Monday. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,885.00 and then at $1,900.00. First support is seen at today’s low of $1,863.90 and then at $1,850.00. Wyckoff's Market Rating: 5.0
March silver futures prices hit a three-week high today. Silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $26.27 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at today’s high of $25.015 and then at $25.50. Next support is seen at today’s low of $24.55 and then at $24.00. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed down 190 points at 349.70 cents today. Prices closed nearer the session high today and saw profit taking. Prices Monday hit a 7.5-year high. The copper bulls have the strong overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at this week’s high of 354.60 cents and then at 357.50 cents. First support is seen at today’s low of 346.70 cents and then at 344.00 cents. Wyckoff's Market Rating: 8.0.