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Gold, silver rally as USDX sells off, U.S. bond yield dip

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(Kitco News) - Gold and silver prices are higher in midday U.S. trading Wednesday, boosted by declines in the U.S. dollar index and in U.S. Treasury yields on this today. The overall near-term technical postures for gold and silver remain bullish, which is also inviting the chart-based traders to the long sides of the these markets. February gold was last up $12.70 at $1,795.20 and March silver was up $0.525 at $22.86.

Global stock markets were mostly lower overnight. U.S. stock indexes are weaker at midday. The U.S. stock index bulls are fading fast this week and near-term price uptrends on the daily bar charts have been negated.

In overnight news, following recent public protests, China has announced sweeping revisions to its strict Covid measures that ultimately failed. The new guidelines keep some restrictions in place but largely scrap the health code that has been mandatory for entering most public places and roll back mass testing. Metals market bulls are hoping the less restrictive Covid measures in the world’s second-largest economy will stimulate business growth, including better commercial and consumer demand for metals from the country.


China buys 32 tonnes of gold in November, first increase in reserves since 2019

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices lower and trading around $73.00 a barrel. Prices today hit an 11-month low. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.466%.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have the 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 above solid resistance at this week’s high of $1,822.90. 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 November high of $1,806.00 and then at $1,822.90. First support is seen at this week’s low of $1,778.10 and then at $1,770.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the overall near-term technical advantage. Prices are in a choppy three-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $20.79. First resistance is seen at today’s high of $23.01 and then at $23.50. Next support is seen at this week’s low of $22.19 and then at $22.00. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed up 390 points at 385.65 cents today. Prices closed near the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 394.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 354.70 cents. First resistance is seen at this week’s high of 389.45 cents and then at 394.70 cents. First support is seen at this week’s low of 377.30 cents and then at 370.00 cents. Wyckoff's Market Rating: 6.0.

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.