Gold price hits 5-week high as crude oil surges, USDX weaker

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(Kitco News)Gold and silver prices are higher in early U.S. trading Tuesday, with gold notching a five-week high and silver a four-week high. Sharp gains in crude oil futures this week and a wobbly U.S. dollar index are fueling the precious metals market bulls. February gold was last up $9.00 at $1,817.60 and March Comex silver was last up $0.216 at $23.21 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins, and are at or near their record highs. Traders and investors continue to exhibit general “risk-on” attitudes that are bullish for the stock markets. The Omicron strain of the coronavirus is proving to produce less serious illness than the other strains, while new vaccines and therapeutics are rolling out to battle the virus. “Serious but manageable” appears to be how the marketplace is viewing the matter. The U.S. Center for Disease Control has just cut in half the quarantine time for those exposed to the virus.

The key “outside markets” today see Nymex crude oil prices higher, at a five-week high, and trading around $76.85 a barrel. The U.S. dollar index is slightly lower early today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.472%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales reports, the monthly house price index, the S&P Case-Shiller home price indexes, and the Richmond Fed business survey.

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 $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,785.00. First resistance is seen at $1,825.00 and then at $1,840.00. First support is seen at the overnight low of $1,809.40 and then at $1,800.00. Wyckoff’s Market Rating: 6.5.

Live 24 hours silver chart [ Kitco Inc. ]


The March silver bears have the overall near-term technical advantage. Recent upside price action suggests a market bottom is in place. Silver bulls’ next upside price objective is closing December futures 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 $23.50 and then at $23.75. Next support is seen at $23.00 and then at this week’s low of $22.655. Wyckoff’s Market Rating: 3.5.

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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