(Kitco News) - Gold and silver prices are posting sharp gains in midday U.S. trading Monday. Gold hit a two-week high and silver a four-week high. Safe-haven demand is featured, following a weekend of important fundamental news developments. February gold was last up $29.70 at $2,689.40 and March silver was up $1.122 at $32.71.
The collapse of Syrian strongman Bashar Al-Assad’s rule has the world on watch for more Mideast turmoil. That’s prompting some safe-haven buying of gold and silver. U.S. and Israeli airstrikes hit dozens of military targets inside Syria, to prevent the new regime in Syria from accessing weapons and munitions.
Meantime, Chinese and Asian stocks rallied and the Chinese yuan gained Monday after China said it plans to be “more proactive” in stimulating its listing economy. That’s bullish for metals from a demand perspective, as China is a voracious consumer of raw commodities. Reports also say China’s central bank has been a better buyer of gold lately.
South Korea’s political crisis has pushed that nation’s stocks and currency lower, also prompting some safe-haven demand for gold and silver.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are higher and trading around $68.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
Technically, February gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,748.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at today’s high of $2,700.00 and then at $2,730.00. First support is seen at $2,675.00 and then at $2,650.00. Wyckoff's Market Rating: 6.5.
March silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at today’s high of $32.945 and then at $33.00. Next support is seen at $32.50 and then at $32.00. Wyckoff's Market Rating: 6.5.
(Hey! My “Markets Front Burner” weekly email report 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! Sign up here; it’s real easy. https://www.kitco.com/services.
