Gold, silver bulls out of the gate strong to start 2021
Gold and silver futures prices are trading sharply up in midday U.S. action Monday, with gold hitting a seven-week high and silver a 3.5-month high. The metals are being boosted by a very anemic U.S. dollar on the foreign exchange market that saw the dollar index hit a 2.5-year low overnight. Safe-haven demand is also seen as the U.S. stock market sold off Monday, and also amid surging Covid-19 cases in the U.S., Europe and other parts of the world. The specter of rising and possibly problematic price inflation also appears to be gaining some steam. February gold futures were last up $45.90 at $1,940.70 and March Comex silver was last up $.798 at $27.21 an ounce.
Trader and investor risk appetite remains generally upbeat. The marketplace continues to look over the horizon at what is hoped will be a better second-half of 2021, in both economic and human health terms. The incoming Biden administration is expected to roll out more economic aid to the public and businesses. Also, Americans began receiving their U.S. government stimulus funds late last week, which gives many struggling Americans a bit of a temporary life line.
Commodity markets are also getting a lift early this week in part on some notions the U.S. Senatorial elections in Georgia could see the Democrats win a majority in the Senate, which would make the Senate and the Congress in control of the Democrats. Such would suggest higher spending that would also likely help to stoke price inflation. However, many think it is still unlikely both Democratic senatorial candidates will win in Georgia. The vote is Tuesday.
The other important outside market today sees February Nymex crude oil futures prices lower and trading around $47.59 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently around 0.925%.
Technically, February gold futures prices today hit a seven-week high. The gold bulls have the firm overall near-term technical advantage and gained more power today. A five-week-old price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in December 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 $1,900.00. First resistance is seen at today’s high of $1,948.70 and then at $1,973.30. First support is seen at $1,925.00 and then at today’s low of $1,906.10. Wyckoff's Market Rating: 7.0
March silver futures prices hit a 3.5-month high early on today. Silver futures bulls have the firm overall near-term technical advantage and gained more power today. A five-week-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August 2020 high of $30.365 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at today’s high of $27.76 and then at $28.00. Next support is seen at today’s low of $26.73 and then at $26.50. Wyckoff's Market Rating: 7.0.
March N.Y. copper closed up 330 points at 355.15 cents today. Prices closed near mid-range today. The copper bulls have the solid overall near-term technical advantage as prices hover near a nearly eight-year high scored last month. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 364.55 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at 360.00 cents and then at 364.55 cents. First support is seen at last week’s low of 350.55 cents and then at 347.80 cents. Wyckoff's Market Rating: 8.0.