Price advance for gold on some safe-haven demand
(Kitco News) - Gold futures prices are moderately higher in early U.S. trading Wednesday, on some safe have demand as there is some keener risk aversion in the marketplace at mid-week. Silver prices are a bit lower. Bulls are still working to stabilize the metals after last Friday’s big losses. February gold futures were last up $9.90 at $1,854.10 and March Comex silver was last down $0.085 at $25.35 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Focus today is on the U.S. House of Representatives that is 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 is the consumer price index for December, seen coming in at up 0.4% from November and compares to a rise of 0.2% for November. Year-on-year the December CPI is seen up 1.3% 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 higher. Meantime, Nymex crude oil futures prices are slightly higher, hit another 10-month high overnight, and are trading around $53.40 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.126%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the consumer price index, real earnings, the Federal Reserve’s beige book, the monthly Treasury budget statement and the weekly DOE liquid energy stocks report.
Technically, the February gold futures bulls and bears are on a level overall near-term technical playing field. However, an ominous bearish pennant pattern may be forming on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures 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 the November low of $1,767.20. First resistance is seen at this week’s high of $1,864.00 and then at $1,875.00. First support is seen at the overnight low of $1,849.10 and then at $1,841.00. 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 has formed on the daily bar chart that is ominous. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $28.105 an ounce. The next downside price objective for the bears is closing prices below solid support at the November low of $21.96. First resistance is seen at the overnight high of $25.785 and then at $26.00. Next support is seen at Tuesday’s low of $25.00 and then at this week’s low of $24.365. Wyckoff's Market Rating: 5.0.