Price gains for gold, silver on bullish outside markets
(Kitco News) - Gold and silver prices are higher in early U.S. trading Tuesday. The key outside markets are in a daily bullish posture for the precious metals as the U.S. dollar index is weaker, crude oil prices are firmer and U.S. Treasury yields have dipped a bit to start the holiday-shortened trading week. February gold was last up $12.90 at $1,816.90 and March silver was up $0.385 at $24.305.
Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The marketplace is quieter following the Christmas holiday weekend that saw markets closed Monday.
China’s relaxation of its strict Covid policies remains in focus, with the marketplace wondering if the pivot by Chinese authorities will prompt faster growth in the world’s second-largest economy. Or, will the pivot prompt such a surge in Covid infections that China’s economy will be further damaged in the near term?
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are up and trading around $80.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.777%.
U.S. economic data due for release Tuesday includes the advance economic indicators report, the monthly U.S. house price index, the S&P-CoreLogic Case-Shiller home price indexes and the Texas manufacturing outlook survey.
Technically, the gold futures bulls have the overall near-term technical advantage. Prices are in a seven-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 $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at $1,825.00 and then at last week’s high of $1,833.80. First support is seen at today’s low of $1,808.00 and then at $1,800.00. Wyckoff's Market Rating: 6.5.
The silver bulls have the solid overall near-term technical advantage. A choppy, four-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 $22.00. First resistance is seen at the December high of $24.525 and then at $25.00. Next support is seen at $24.00 and then at $23.55. Wyckoff's Market Rating: 7.5.
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