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Gold price powers to 3.5-mo. High, more upside likely

Kitco Media
By Jim Wyckoff
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Updated
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Live 24 hours gold chart [Kitco Inc.]

(Kitco News) -The gold and silver market bulls have hit the accelerator in the wake of a dovish lean on U.S. monetary policy by Federal Reserve Chairman Jerome Powell in comments delivered Wednesday afternoon.

February gold futures this morning hit a 3.5-month high of $1,814.50 as of this writing. March silver futures prices hit a six-month high of $22.79. Buy stop orders were triggered in the gold futures market as prices pushed above former chart resistance at the November high of $1,806.00. Buy stops were also set off when silver pushed above its November high.

In the wake of Powell's remarks, the U.S. dollar index has dropped sharply, crude oil prices are solidly higher and U.S. Treasury yields have dropped—all bullish "outside market" elements that are also boosting precious metals markets.

The near-term technical postures for gold and silver have this week turned significantly more bullish. Price uptrends are in place on the daily charts for both metals, suggesting more sideways-to-higher price action is likely in the near term.

Kitco Media

Jim Wyckoff

Jim Wyckoff has spent over 25 years involved with the stock, financial and commodity markets. He was a financial journalist with the FWN newswire service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another.

Jim is the proprietor of the "Jim Wyckoff on the Markets" analytical, educational and trading advisory service. Jim also worked as a technical analyst for Dow Jones Newswires and as the senior market analyst with TraderPlanet.com. Jim is also a consultant with the highly respected "Pro Farmer" agricultural advisory service. Jim was also the head equities analyst at CapitalistEdge.com. He received his degree from Iowa State University in Ames, Iowa, where he studied journalism and economics.

Follow Jim daily on Kitco.com as he provides both AM and PM roundups and a daily Technical Special. 1 877 963-NEWS jwyckoff at kitco.com

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