Gold trades both sides of unchanged in quieter session

Gold trades both sides of unchanged in quieter session

Gold prices are near steady in subdued midday U.S. trading Monday. Gains are being squelched by less risk aversion in the marketplace recently, while sellers of the precious metals are tepid amid rising inflation worries. February gold was last down $1.00 at $1,810.60 and March Comex silver was last up $0.115 at $23.035 an ounce.

Global stock markets were mostly weaker overnight in quieter, post-holiday trading. Some markets overseas remained closed for the Christmas holiday. U.S. stock indexes are higher and at or near record highs at midday.

There are still coronavirus worries, but there are also vaccines and drugs coming on line to battle the virus. One market analyst termed the marketplace’s present attitude regarding the coronavirus battle, “serious but manageable.”

Simmering on the back burner of the marketplace is a potential geopolitical crisis, as Russia’s troop buildup on the Ukrainian border has alarmed the U.S. and Europe.

The key “outside markets” today see Nymex crude oil prices solidly higher and trading around $75.75 a barrel. The U.S. dollar index is slightly up today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.482%.

Technically, February gold futures bulls have the overall near-term technical advantage. 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 $1,775.00. First resistance is seen at the December high of $1,815.70 and then at $1,825.00. First support is seen at $1,800.00 and then at last week’s low of $1,785.00. Wyckoff's Market Rating: 6.0.

March silver prices hit a three-week high today. The silver bears still have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. 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 December low of $21.41. First resistance is seen at today’s high of $23.15 and then at $23.50. Next support is seen at today’s low of $22.655 and then at $22.44. Wyckoff's Market Rating: 3.0.

March N.Y. copper closed up 965 points at 448.95 cents today. Prices closed near the session high and hit a four-week high today. The copper bulls have regained the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 477.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 425.00 cents. First resistance is seen at the November high of 451.15 cents and then at 455.00 cents. First support is seen at 445.00 cents and then at 440.00 cents. Wyckoff's Market Rating: 6.0.

By Jim Wyckoff

For Kitco News

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