(Kitco News) – Gold and silver prices are moderately higher in early U.S. futures trading Monday. Despite the upbeat tenor of the overall marketplace, the safe-haven metals are showing keen resilience and even a bit of bullishness as global stock markets rally. The precious metals traders are apparently focused more on the prospects of better worldwide demand for raw commodities in the coming new year. February gold futures were last up $4.30 an ounce at 1,485.20. March Comex silver prices hit a six-week high overnight and were last up $0.126 at $17.35 an ounce.
Asian and European stock indexes are near steady to slightly up in quieter trading overnight. The U.S. stock indexes are pointed toward slightly higher openings and at or near their record highs when the New York day session begins. Traders and investors are gearing up for the upcoming holidays, including squaring their books as the end of the year approaches, so trading interest and volumes are likely to be lighter the next week or so. Markets are closed Wednesday for the Christmas holiday.
Trader and investor risk appetite remains upbeat heading into the end of the year, as the U.S.-China trade war appears to be winding down. China over the weekend announced plans on January 1 to cut import tariffs on hundreds of products from all of its trading partners. Rhetoric from government officials on both sides has been positive the past couple weeks.
The key “outside markets” today see the U.S. dollar index slightly higher. Meantime, Nymex crude oil prices are near steady and trading around $60.50 a barrel after hitting a multi-month high last week.
U.S. economic data due for release Monday includes durable goods orders and new residential sales.
Technically, the gold bulls have gained the slight overall near-term technical advantage as a gentle price uptrend is now in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,500.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,453.10. First resistance is seen at the overnight high of $1,489.10 and then at the December high of $1,491.60. First support is seen at $1,480.00 and then at last week’s low of $1,474.30. Wyckoff’s Market Rating: 5.5
March silver futures bulls also have the slight overall near-term technical advantage as a three-month-old downtrend on the daily bar chart has been negated and prices Monday hit a six-week high. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $16.565. First resistance is seen at the overnight high of $17.465 and then at $17.50. Next support is seen at the overnight low of $17.23 and then at $17.00. Wyckoff’s Market Rating: 5.5.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
