(Kitco News) - Gold and silver prices are solidly up, with gold notching a three-week high, in late-morning U.S. trading Wednesday. A drop in the U.S. dollar index and a dip in U.S. Treasury yields are boosting the precious metals markets. Bullish technical charts for both metals are also prompting speculator buying interest, amid a lack of fresh fundamental news so far this week. February gold was last up $21.00 at $2,090.70. March silver was last up $0.284 at $24.68.
U.S. stock index futures are narrowly mixed near midday, after setting contract and new highs for the year on Tuesday. Traders and investors are still upbeat on ideas the major central banks of the world are done, or close to being done, with there restrictive monetary policies that have at least somewhat squelched global economic growth the past year. That’s also a bullish underlying factor for the metals markets as it suggests better demand for raw commodities.
Israel has this week stepped up its offensive in Gaza, which has the international community very concerned about the heavy loss of innocent lives. The Russia-Ukraine war is close to its second year of conflict, with Ukraine recently stepping up its attacks on Russian military assets.
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are down and trading around $74.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 3.833%.
Technically, the gold futures bulls have the solid overall near-term technical advantage and have momentum. 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 March futures above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,093.80 and then at $2,100.00. First support is seen at today’s low of $2,072.80 and then at this week’s low of $2,065.10. Wyckoff's Market Rating: 8.0.
The silver bulls have the overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at the December low of $22.785. First resistance is seen at last week’s high of $24.895 and then at $25.00. Next support is seen at the overnight low of $24.22 and then at $24.00. Wyckoff's Market Rating: 6.5.
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