(Kitco News) - Gold prices are modestly up in early U.S. trading but hit a record high of $2,150.50, basis nearby Comex futures, in overnight trading. Cash (spot) prices also hit a record high today. Silver prices are near steady and scored a two-month high overnight. Precious metals traders this week are focusing on the prospects of easier monetary policies this year from the major central banks of the world. That would extrapolate into better consumer and commercial demand for metals and also theoretically pressure the U.S. dollar index and lower U.S. Treasury yields. The near-term technical postures for gold and silver have quickly turned more bullish, which is likely to invite some more chart-based buying interest in the near term. April gold was last up $8.80 at $2,135.10. May silver was last up $0.034 at $24.02.
U.S. stock index futures are lower near midday on profit taking after setting new record highs recently. The weaker stock indexes are a friendly outside-market element for the safe-haven gold and silver markets.
This week sees China’s National People’s Congress, including the Chinese People’s Political Consultative Conference. China’s government set a 5% annual or so GDP growth target, which was stronger than most expected and viewed skeptically by the marketplace. “It is not easy for us to realize these targets,” Prime Minister Li Qiang told delegates of the National Peoples’ Congress. China officials also laid out plans to issue 1 trillion yuan ($139 billion) of ultra-long special government bonds this year. Reads a Wall Street Journal headline today: “Xi accepts slowdown, risking stagnation.” The story said, “It is the end of the Chinese growth miracle as we know it,” and China’s leader Xi Jinping is fine with that.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are up a bit and trading around $98.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.143%.
Today is also the “super Tuesday” presidential primary balloting. Also on tap this week, Fed Chairman Powell addresses Congress on Wednesday and Thursday, and the monthly U.S. employment report is out on Friday.
Technically, the gold market bulls have the solid overall near-term technical advantage. A three-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at December high of $2,171.50, basis April futures. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,050.00. First resistance is seen at today’s high of $2,150.50 and then at $2,171.50. First support is seen at today’s low of $2,118.50 and then at $2,100.00. Wyckoff's Market Rating: 8.5.
May silver futures prices hit a two-month high early on today. The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at last week’s low of $22.47. First resistance is seen at today’s high of $24.455 and then at $25.00. Next support is seen at today’s low of $23.845 and then at $23.50. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed down 125 points at 384.45 cents today. Prices closed near the session low today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 388.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 367.95 cents. First resistance is seen at this week’s high of 388.80 cents and then at last week’s high of 391.70 cents. First support is seen at last week’s low of 381.80 cents and then at 378.00 cents. Wyckoff's Market Rating: 5.5.
Hey!! Try out my “Markets Front Burner” weekly email report. Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to the Front Burner list.
