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Price gains for gold, silver on short covering

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(Kitco News) - Gold and silver futures prices higher in early U.S. trading Monday, on some short covering in the futures markets and perceived bargain hunting in the cash markets, following recent solid losses. Both metals are still oversold on a short-term technical basis and are due for additional corrective bounces. April gold futures were last up $6.00 at $1,792.50 and March Comex silver was last up $0.304 at $22.605 an ounce.

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Markets in China and South Korea were closed for a holiday Monday. China’s markets are closed all week for the Lunar New Year holiday. Stock indexes are poised to close out January with solid losses on the month. Inflation worries are high and the Federal Reserve appears behind the curve on controlling it, Covid is still causing global economic problems two years into the pandemic, and Ukraine and Russia remain in a stare-down at their shared border. All of the above are making for reduced trader and investors risk appetite in the marketplace.

In overnight news, there was another drone attack against the United Arab Emirates, for the third week in a row. Iran-backed Houthi terrorists were likely responsible. Markets showed no major reactions to the news.

Gold's breakout hopes crashed but focus shifts to U.S. jobs data next week

The key outside markets today see crude oil prices firmer and trading around $87.50 a barrel. The U.S. dollar index is weaker today. The U.S. Treasury 10-year note yield is presently fetching 1.789%.

U.S. economic data due for release Monday includes the Chicago ISM business survey and purchasing managers index, and the Texas manufacturing survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the April 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 $1,825.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the December low of $1,755.40. First resistance is seen at $1,800.00 and then at $1,810.00. First support is seen at the overnight low of $1,785.80 and then at the January low of $1,780.60. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.50 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $21.41. First resistance is seen at Friday’s high of $22.83 and then at $23.00. Next support is seen at the overnight low of $22.25 and then at $22.00. Wyckoff's Market Rating: 3.0.

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.