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Gold sees slight price gains as bulls having a good week

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(Kitco News) - Gold futures prices are trading a bit higher in early U.S. trading Thursday. Silver is posting modest gains. Both metals have made solid rebounds from their weekly lows, to give the bulls some upside technical momentum. U.S. stock indexes that are at record highs are a bit of restraining element for the safe-haven metals this week, but it can be argued the metals are not faring badly at all given the record-setting stock market rally. February gold futures were last up $1.50 at $1,868.10 and March Comex silver was last up $0.179 at $25.945 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings and new record highs when the New York day session begins. The marketplace is more upbeat following the peaceful transition of U.S. power on Wednesday, with no civil unrest that some had feared would occur. It’s expected President Bident will quickly act with Congress to get his $1.9 trillion stimulus plan rolling, and that markets also like that. It’s also a big corporate earnings week in the stock market, with most of those reports being upbeat. For now, traders and investors have pushed aside the still-raging Covid-19 pandemic in the U.S. and other countries. In the U.S. the death toll has surpassed 400,000, with many more lives likely to be lost in the coming weeks. New strains of Covid are also a worry amid hopes that vaccine distribution will dramatically pick up with the new U.S. administration.

The key “outside markets” today see the U.S. dollar index lower as bulls are fading this week following the recent good rebound from a 2.5-year low scored earlier this month. The main rival to the greenback, the Euro currency, is also in a mild tailspin at present. The weaker dollar and weaker Euro, which usually trade divergently, suggest the “commodity” currencies such as the Australian and Canadian dollars are the better performers. Meantime, Nymex crude oil futures prices are lower and trading around $53.00 a barrel, but still not far below the recent 10-month high. The yield on the benchmark 10-year U.S. Treasury note stands at 1.09%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, and new residential construction.

Live 24 hours gold chart [Kitco Inc.]

Technically, the February gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,800.80. First resistance is seen at the overnight high of $1,874.60 and then at $1,880.00. First support is seen at $1,850.00 and then at Wednesday’s low of $1,831.10. Wyckoff's Market Rating: 5.5.

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the overall near-term technical advantage. 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 this week’s low of $24.04. First resistance is seen at the overnight high of $26.13 and then at $26.27. Next support is seen at $25.50 and then at $25.00. Wyckoff's Market Rating: 6.0.
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