(Kitco News) - Gold and silver prices are sharply higher in midday U.S. trading Monday, on safe-haven bidding following the surprise U.S. raid in Venezuela that captured its dictator. February gold was last up $129.50 at $4,459.00. March silver prices were up $5.975 at $77.01.
While stock and financial markets are taking the Venezuela news mostly in stride today, with some global stock indexes hitting record highs overnight, it appears precious metals traders are more wisely looking over the horizon and wondering what the U.S. raid in Venezuela may mean for the geopolitical front in the future. For example, President Trump has warned other Central and South American countries about their illicit drug shipments to the U.S. and has said the U.S. will re-exert its influence in the Western Hemisphere. Trump has also expressed interest in the U.S. acquiring Greenland. China, Russia and other nations criticized the U.S. for its raid on Venezuela, but China may have just gotten more bold in its intent to reclaim Taiwan—so it can beef up its own dominance in the Eastern Hemisphere. And after the U.S.-Isreal major air strikes against Iran last summer, that nation has become politically unstable with civil unrest growing. Meantime, war-torn Russia is watching it all unfold amid its own decaying economy and its only global playing card being a bulging but aging nuclear stockpile. It seems precious metals traders are taking all of the above into account more so than the stock and financial markets—at least on this day. Indeed, all of the above taken together, or even in parts, is enough to more than move the needle on better safe-haven demand for gold and silver.
Big U.S. economic data week ahead. Traders and investors are also focused on key U.S. economic data this week that could influence Federal Reserve policy. Markets are awaiting the monthly jobs report for December on Friday, along with jobs and labor turnover survey (JOLTS) and ADP employment figures, ISM purchasing managers indexes (PMIs), and the Michigan consumer confidence survey.
The key outside markets today see the U.S. dollar index slightly lower. Crude oil prices are up and trading around $58.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.17%.
Technically, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $4,584.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,200.00. First resistance is seen at today’s high of $4,467.60 and then at $4,500.00. First support is seen at $4,400.00 and then at the overnight low of $4,354.60. Wyckoff's Market Rating: 7.5.
March silver futures bulls’ next upside price objective is closing prices above solid technical resistance at the record high of $82.67. The next downside price objective for the bears is closing prices below solid support at last week’s low of $69.225. First resistance is seen at today’s high of $77.205 and then at $78.00. Next support is seen at the overnight low of $72.505 and then at $71.00. Wyckoff's Market Rating: 7.5.
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