Gold, silver rise on some safe-haven demand, bargain hunting
(Kitco News) - Gold and silver futures prices are higher in midday U.S. trading Wednesday, on some safe have demand as there is some keener risk aversion in the marketplace at mid-week. Bulls are still working to stabilize the metals and made some more progress today, including seeing some bargain hunting after last Friday’s big losses. February gold futures were last up $14.20 at $1,858.30 and March Comex silver was last up $0.18 at $25.615 an ounce.
Global stock markets were mixed today. U.S. stock indexes are firmer at midday. Focus today was on the U.S. House of Representatives that was set to impeach President Trump for an unprecedented second time. Trump has one week left in his term as president. The marketplace remains a bit anxious ahead of the inauguration of Joe Biden as the next president, amid extremists’ threats of violence across the U.S.
The U.S. data point of the day at mid-week was the consumer price index for December, coming in up 0.4%, which was right in line with market expectations. Year-on-year the December CPI was up 1.4% versus up 1.2% in November. These numbers are not at all problematic for inflation, despite recent talk of rising and even problematic inflation in the coming months.
The key “outside markets” today see the U.S. dollar index mildly higher. Meantime, Nymex crude oil futures prices are slightly lower after hitting another 10-month high overnight, and are trading around $52.90 a barrel.
Technically, February gold futures bulls and bears are on a level overall near-term technical playing field. However, a bearish pennant pattern may be forming on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the January high of $1,962.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week’s high of $1,864.00 and then at $1,875.00. First support is seen at today’s week’s low of $1,849.10 and then at Tuesday’s low of $1,835.80. Wyckoff's Market Rating: 5.0
March silver futures bulls and bears are on a level overall near-term technical playing field. However, a bearish pennant pattern may be forming on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $29.105 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at today’s high of $25.785 and then at $26.000. Next support is seen at today’s low of $25.17 and then at $25.00. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed up 135 points at 361.90 cents today. Prices closed nearer the session low today. The copper bulls have the solid 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 345.00 cents. First resistance is seen at today’s high of 364.95 cents and then at this week’s high of 369.25 cents. First support is seen at this week’s low of 355.25 cents and then at 352.50 cents. Wyckoff's Market Rating: 7.5.