Gold, silver bulls claw back early losses, buy the dips
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(Kitco News) - Gold and silver prices are firmer in midday U.S. trading Wednesday, as the market bulls stepped in to buy the weaker levels seen in early trading. A weaker U.S. dollar index and higher crude oil prices on this day are also positive outside market influences on the precious metals. February gold was last up $3.70 at $1,939.20 and March silver was up $0.121 at $23.87.
Global stock markets were mixed overnight, with European shares mostly down and Asian shares mostly up. China markets are quiet as the Lunar New Year holiday is being celebrated. U.S. stock indexes are lower at midday.
The World Bank and Swiss Federal Office for Customs and Border Security reported Swiss exports of gold to China surged in 2022, at 478 metric tons. That’s up from 274 tons in 2021.
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The key outside markets today see the U.S. dollar index slightly lower as prices are still in a downtrend on the daily bar chart and not far above the recent nine-month low. Nymex crude oil futures prices are firmer and trading around $80.50 a barrel. Oil prices are still in an uptrend on the daily bar chart. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.467%.
Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures 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 this week’s high of $1,943.80 and then at $1,950.00. First support is seen at today’s low of $1,920.60 and then at this week’s low of $1,912.50. Wyckoff's Market Rating: 8.0
The silver bulls have the slight overall near-term technical advantage. However, trading has been sideways and choppy and a price uptrend on the daily chart has been negated. Silver bulls' next upside price objective is closing March futures 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 $23.26 and then at $23.00. Wyckoff's Market Rating: 5.5.