Gold price powers to record high, backs off

Date:

(Kitco News) – Gold and silver prices are weaker in early U.S. trading Monday, after gold spiked to a new record high of $2,152.30, basis February Comex futures, while silver hit a seven-month high overnight. The two precious metals are now pausing after recent solid gains, which is not surprising. The shorter-term futures traders are taking some profits. February gold was last down $1.70 at $2,088.00. March silver was last down $0.302 at $25.56.

Gold and silver remain supported by bullish technical charts, a depreciating U.S. dollar on the foreign exchange market, falling bond yields, some safe-haven demand, and notions the major central banks of the world will back off on their interest-rate-increase cycles.

Asian and European stock markets were mixed to firmer in overnight trading. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.

Risk aversion is keener to start the trading week as tensions in the Middle East are on the rise. Missiles fired by Yemen’s Houthi rebels struck three commercial ships Sunday in the Red Sea, while a U.S. warship shot down three drones in self-defense, the U.S. military said. The Iranian-backed Houthis claimed two of the attacks. Meantime, Israel has resumed its military offensive in the Gaza strip.

Bitcoin prices overnight pushed above $41,000 and to a 20-month high, on ideas U.S. regulators are taking a more favorable view of the crypto currency.



The key outside markets today see the U.S. dollar index a bit firmer. Nymex crude oil prices are slightly down and trading around $73.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.245%.

U.S. economic data due for release Monday is light and includes manufacturers’ shipments and inventories.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in an accelerating two-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at the overnight record high of $2,152.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,100.00 and then at $2,125.00. First support is seen at the overnight low of $2,077.40 and then at $2,050.00. Wyckoff’s Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the solid 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 March futures prices above solid technical resistance at the May high of $27.09. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $26.00 and then at the overnight high of $26.34. Next support is seen at $25.25 and then at $25.00. Wyckoff’s Market Rating: 7.0.

Try out my “Markets Front Burner” email report. My next one is due out today and is going to be entitled, “When China sneezes…” Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it’s free! Sign up to my new, free weekly Markets Front Burner newsletter, at  https://www.kitco.com/services/markets-front-burner.html .

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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