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Modest price advances for gold, silver ahead of busy U.S. data week

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(Kitco News) - Gold and silver futures prices are trading firmer in early U.S. trading Monday. The bulls have stabilized both metals’ 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 $6.20 at $1,862.50 and March Comex silver was last up $0.124 at $25.68 an ounce.

Global stock markets were flat to mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. 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 slightly up. Meantime, Nymex crude oil futures prices are slightly lower and trading around $52.15 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.10%.

U.S. economic data due for release Monday includes the Chicago Fed national activity index and the Texas manufacturing outlook survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the February gold futures bulls and bears are on a level overall near-term technical playing field. 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 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 the overnight low of $1,847.30 and then at Friday’s low of $1,836.30. Wyckoff's Market Rating: 5.0.

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures 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 $28.105 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 the overnight high of $25.835 and then at last week’s high of $26.13. Next support is seen at the overnight low of $25.47 and then at $25.00. Wyckoff's Market Rating: 5.5.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.