Gold rallies to 6-mo. peak; new record high coming soon

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(Kitco News) – Gold and silver prices are solidly higher near midday Tuesday, with gold notching a six-month high. Both precious metals are supported today by some less-hawkish “Fed-speak,” bullish near-term technical postures and a slumping U.S. dollar index. It’s my strong bias the gold market will, in the coming weeks, score a new record high. The present peak is $2,085.40 an ounce, basis nearby Comex futures, scored in May of this year. February gold was last up $22.30 at $2,055.10. March silver was last up $0.287 at $25.325.

A couple of Federal Reserve officials today sounded less hawkish, which helped to pressure the greenback and support the precious metals markets. Fed governor and FOMC member Christopher Waller said the U.S. economic momentum is slowing and he is encouraged by that. The Richmond Fed manufacturing survey released today corroborated Waller’s comments on the economy slowing down a bit. However, another Fed governor and FOMC member, Michelle Bowman, today still sounded hawkish in her comments in a speech.

Asian and European markets were mixed in overnight trading, with Asian shares mostly up and European shares mostly down. U.S. stock indexes are pointed toward slightly up near midday. Geopolitical tensions have not escalated in recent weeks, which has calmed the general marketplace and allowed risk appetite to up-tick.



The key outside markets today see the U.S. dollar index slightly lower and hitting a 3.5-month low. Nymex crude oil prices solidly up and trading around $77.00 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. However, now the consensus is that at this meeting OPEC will announce another cut in its overall production. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.357%.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures prices hit a six-month high today. The bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,060.00 and then at $2,075.00. First support is seen at today’s low of $2,031.60 and then at this week’s low of $2,022.00. Wyckoff’s Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices were poised to close at a three-month high close 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 $25.50 and then at $25.75. Next support is seen at today’s low of $24.94 and then at this week’s low of $24.68. Wyckoff’s Market Rating: 7.0.

March N.Y. copper closed up 515 points at 385.15 cents today. Prices closed near the session high today and scored a bullish “outside day” up. The copper bulls have the overall near-term technical advantage. Prices are in a six-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 the November high of 386.00 cents and then at 390.00 cents. First support is seen at 380.00 cents and then at 375.80 cents. Wyckoff’s Market Rating: 6.0.

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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