Gold, silver hit multi-week highs on weak USDX, bullish charts
Gold and silver prices are moderately higher near midday Monday, but down from their daily highs. February gold hit a four-week high and March silver a three-month high today. The precious metals are seeing buying support from a slumping U.S. dollar index that is trading near last week's three-month low. The technical postures for both metals also lean bullish, which continues to invite the chart-based traders to the long sides of gold and silver. February gold was last up $5.80 at $2,029.50. March silver was last up $0.358 at $25.06.
Gold and silver futures bulls are also benefiting from notions the U.S. Federal Reserve is done raising U.S. interest rates, following some recent tamer inflation numbers. A Dow Jones Newswires headline today reads: "Gold edges higher on hopes Fed's tightening cycle may be over."
Asian and European markets were mostly weaker in overnight trading. U.S. stock indexes are mixed near midday. From a markets perspective, there were no major geopolitical developments over the long U.S. Thanksgiving holiday weekend.
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Gold needs to break above $2,010 for prices to have a chance at ATHs
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are slightly lower and trading around $75.25 a barrel. An OPEC-plus meeting takes place this week. Reports say there have been cartel member disagreements on whether to further cut collective crude oil production. A Barron's headline today reads: "Oil prices are falling; OPEC is reaching the limits of its power." The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.574%.
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Technically, February gold futures prices hit a four-week high today. The bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the October high of $2,039.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,039.70 and then at $2,050.00. First support is seen at today's low of $2,022.00 and then at last Friday's low of $2,011.30. Wyckoff's Market Rating: 6.0
March silver futures prices hit a three-month high today. The silver bulls have the firm overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $26.10. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at today's high of $25.29 and then at $25.50. Next support is seen at today's low of $24.68 and then at $24.50. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed down 370 points at 379.55 cents today. Prices closed near the session low today. The copper bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 392.65 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 362.60 cents. First resistance is seen at today's high of 384.15 cents and then the November high of at 386.00 cents. First support is seen at 375.80 cents and then at 371.25 cents. Wyckoff's Market Rating: 6.0.
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By
Jim Wyckoff
For Kitco News
David