Gold slightly up as crude oil rallies

Gold prices are up just a bit in midday U.S. trading Monday. Solid gains in crude oil prices to start the trading week (bullish) are slightly trumping better trader/investor risk attitudes (bearish). February gold was last up $1.50 at $1,785.40 and March Comex silver was last down $0.136 at $22.34 an ounce.

It was a quieter trading day Monday. Global stock markets were mixed to firmer. U.S. stock indexes are higher at midday. There is less risk aversion in the global marketplace to start the trading week. Early reports say the Omicron strain of the coronavirus appears to be a milder strain than Delta, but may be more contagious.

In other weekend news, Bitcoin and other crypto currencies saw their prices plunge, with Bitcoin losing over 10% in value at one point. Ideas of a tighter U.S. monetary policy sooner apparently helped to sink the cryptos.

Asian shares were pressured by a big drop of 20% in property giant Evergrande, as that firm warned it could default on some debt payments.

Gold is stuck between these two forces, prices to climb towards $1,900 in Q1 2022 – Standard Chartered

China's central bank has eased its monetary policy slightly by reducing the reserve requirement ratio for its banks.

The key "outside markets" today see Nymex crude oil prices solidly higher and trading around $68.25 a barrel. The U.S. dollar index is higher. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.388%.

Technically, February gold futures bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Bulls' next upside price objective is to produce a close above solid resistance at $1,840.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,761.00. First resistance is seen at today's high of $1,789.00 and then at $1,800.00. First support is seen at $1,775.00 and then at last week's low of $1,762.20. Wyckoff's Market Rating: 5.5

March silver futures bears have the firm overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.46. First resistance is seen at today's high of $22.635 and then at $23.00. Next support is seen at last week's low of $22.035 and then at $22.00. Wyckoff's Market Rating: 2.5.

March N.Y. copper closed up 460 points at 4310.25 cents today. Prices closed near the session high today. The copper bears 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 November high of 451.15 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 420.00 cents. First resistance is seen at 435.15 cents and then at last week's high of 438.15 cents. First support is seen at today's low of 425.35 cents and then at the November low of 420.00 cents. Wyckoff's Market Rating: 4.5.
 

By Jim Wyckoff

For Kitco News

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