Gold, silver see choppy trade, awaiting next catalyst
(Kitco News) - Gold and silver prices are not trading far from unchanged and are near the middle of today’s trading range in midday U.S. trading Monday. The gold and silver bulls have stabilized the price action and are now awaiting the next catalyst to break prices out of their near-term trading ranges. February gold futures were last up $0.60 at $1,856.70 and March Comex silver was last down $0.091 at $25.46 an ounce.
Global stock markets were flat to mostly firmer overnight. U.S. stock indexes are mixed at midday but not far below their record highs. It’s a busy week for U.S. economic data, highlighted by the Federal Reserve’s two-day Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and Fed Chairman Powell’s press conference.
Attention will also be on the Biden administration’s efforts to push through Congress its $1.9 trillion stimulus package for Americans and businesses. Republicans are balking at the size of the package.
The key “outside markets” today see the U.S. dollar index modestly up. Meantime, Nymex crude oil futures prices are near steady and trading around $52.30 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.10%.
Technically, February gold futures sees recent price action still suggesting a near-term market bottom is in place. The gold bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,800.80. First resistance is seen at last week’s high of $1,874.60 and then at $1,880.00. First support is seen at today’s low of $1,846.20 and then at last Friday’s low of $1,836.30. Wyckoff's Market Rating: 5.0.
March silver futures see recent gains suggesting a near-term market bottom is in place but trading is choppy. The silver bulls have the slight overall near-term technical advantage. 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 the January low of $24.04. First resistance is seen at today’s high of $25.835 and then at last week’s high of $26.13. Next support is seen at $25.00 and then at $24.50. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed down 40 points at 362.20 cents today. Prices closed near mid-range 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 368.40 cents and then at the January high of 373.40 cents. First support is seen at last week’s low of 355.85 cents and then at 352.50 cents. Wyckoff's Market Rating: 7.5.