Gold firmer in choppy trading after hitting 9-mo.high
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(Kitco News) - Gold prices are modestly higher in choppy, two-sided trading at midday Tuesday, after hitting a nine-month peak overnight. The market is seeing some normal backing and filling on the charts today. Still, the technical posture for gold remains fully bullish. February gold was last up $4.50 at $1,933.20 and March silver was up $0.176 at $23.73.
The recent depreciation in the U.S. dollar on the foreign exchange market is partly responsible for gold's recent surge. However, longtime market watchers are wondering if metals traders sense the geopolitical landscape will significantly heat up in the coming months. An interesting news headline this morning from Barron's: "A summer of sovereign debt crises could be coming. Is the Fed ready?" Meantime, a headline from the Wall Street Journal today reads: "Hopes for a markets recovery hinge on big drop in inflation." In other words, if inflation heats back up again, the general marketplace would be in big trouble. Maybe gold traders are sensing that scenario may occur, too.
Global stock markets were mixed overnight. U.S. stock indexes are slightly lower at midday.
|Gold price eyes $1,950 but it might have to wait until the Fed meeting before moving on to $2,000 - analysts|
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are lower and trading around $80.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.631%.
Technically, February gold futures prices hit a nine-month high early on today. Bulls have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,885.00. First resistance is seen at today's high of $1,943.80 and then at $1,950.00. First support is seen at this week's low of $1,912.50 and then at $1,900.00. Wyckoff's Market Rating: 8.0
March silver futures saw short covering featured after prices hit a five-week low Monday. The silver bulls have the overall near-term technical advantage. However, a four-month-old uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $24.775. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $24.00 and then at this week's high of $24.295. Next support is seen at today's low of $23.31 and then at $23.00. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed down 170 points at 424.05 cents today. Prices closed nearer the session low today. The copper bulls have the solid overall near-term technical advantage. A 3.5-month-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at this week's high of 430.25 cents and then at the January high of 435.50 cents. First support is seen at 420.00 cents and then at 416.80 cents. Wyckoff's Market Rating: 7.5.