Slumping greenback propels price gains for gold, silver

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(Kitco News) – Gold and silver prices are higher in early U.S. trading Monday. February gold hit a four-week high and March silver a three-month high overnight. 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 $12.10 at $2,035.60. March silver was last up $0.488 at $25.18.

Asian and European markets were mostly weaker in overnight trading. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins. From a markets perspective, there were no major geopolitical developments over the long U.S. Thanksgiving holiday weekend.

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.”

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are lower and trading around $74.50 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 4.447%.



U.S. economic data due for release Monday includes new residential sales and the Texas manufacturing outlook survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $2,019.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,935.60. First resistance is seen at this week’s high of $2,009.80 and then at $2,019.70. First support is seen at Wednesday’s low of $1,988.60 and then at Tuesday’s low of $1,979.90. Wyckoff’s Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the firm overall near-term technical advantage as prices hit a three-month high overnight. 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 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 the August high of $25.775. Next support is seen at the overnight low of $24.68 and then at $24.50. 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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