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Steady price action in gold, silver but bulls in command

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(Kitco News) - Gold and silver prices are near unchanged levels in early U.S. trading Monday, as gold hit a 3.5-month high and silver a seven-month high. The precious metals bulls are enjoying the near-term technical advantage, which is likely to continue to invite chart-based buyers to the long side of the markets in the near term. February gold was last up $1.00 at $1,810.00 and March silver was up $0.025 at $23.28.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The marketplace has digested last Friday’s stronger-than-expected U.S. jobs report that reinforced notions the Federal Reserve will have to keep in place its tightening of monetary policy for some time to come, in order to slow U.S. economic growth and reduce problematic price inflation.

The key outside markets today see the U.S. dollar index slightly lower after hitting a 3.5-month low Friday. Nymex crude oil prices are higher and trading around $82.00 a barrel. As of Monday, the European Union and the U.K. have barred inbound shipments of crude oil from Russia and put a cap of $60 a barrel on EU companies doing business facilitating Russian oil shipments elsewhere in the world. At a meeting over the weekend the OPEC oil cartel lefts its collective crude oil production unchanged. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.515%.

Will $1,800 bring the gold bulls back? Analysts look for follow-through buying next week

U.S. economic data due for release Monday includes the U.S. services purchasing managers index (PMI), the global services PMI, the ISM report on business services, the employment trends index, and manufacturers’ shipments and inventories.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the firm overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the August high of $1,836.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at the overnight high of $1,822.90 and then at $1,836.70. First support is seen at $1,800.00 and then at $1,782.90. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the solid overall near-term technical advantage. A choppy, three-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at today’s high of $23.69 and then at $24.00. Next support is seen at $23.00 and then at $22.50. Wyckoff's Market Rating: 7.5.

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.