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Modest price declines for gold as global stock markets stabilize

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(Kitco News) - Gold futures prices are modestly down in early U.S. trading Wednesday. Global stock markets have stabilized at mid-week after being briefly roiled early Monday on new Covid-19 worries. February gold futures were last down $5.50 at $1,864.90 and March Comex silver was last down $0.07 at $25.465 an ounce.

Global stock markets were mostly up overnight. U.S. stock indexes are also pointed toward firmer openings when the New York day session begins. The marketplace is not paying much attention to President Trump’s threat to not sign a U.S. stimulus package agreed upon by the Congress a few days ago. Trump wants more funding for individual Americans—triple the amount Congress agreed upon. Trump is not likely to veto the bill, and even if he does not sign it, it will still become law in 10 days.

Traders and investors are still somewhat tentative as medical experts continue to assess the implications of the new strain of Covid-19 that has hit the U.K and has likely spread to other countries, including the U.S. Many experts believe current Covid-19 vaccines will still work on the new mutation, which is more easily transmissible.

European markets were upbeat on continued progress between the U.K. and the European Union on a smooth Brexit deal. Some reports said a deal could be reached on the matter as soon as today.

The U.S. dollar index is lower in early U.S. trading. The other important outside market sees February Nymex crude oil futures prices slightly up and trading around $47.15 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.92%.

It’s a very busy day of U.S. economic data due for release Wednesday, including the weekly MBA mortgage applications survey, personal income and outlays, durable goods orders, the weekly jobless claims report, the U.S. house price index, new residential sales, the University of Michigan consumer sentiment survey, and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the February gold futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. However, bulls need to show fresh power soon to keep the uptrend alive. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the November high of $1,973.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,820.00. First resistance is seen at the overnight high of $1,877.00 and then at Tuesday’s high of $1,889.40. First support is seen at this week’s low of $1,859.00 and then at 1,850.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the overall near-term technical advantage amid a near-term price uptrend still in place on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $27.635 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at the overnight high of $25.83 and then at $26.00. Next support is seen at this week’s low of $25.12 and then at $25.00. Wyckoff's Market Rating: 6.0.

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