Gold, silver slightly up as near-term chart postures improving

Gold and silver prices are a bit higher near midday Tuesday, with gold notching a five-week high and silver a four-week high in the early going. The two precious metals markets are seeing the bullish traders working on near-term price uptrends for both. Sharp gains in crude oil futures recently are also supporting the precious metals markets. February gold was last up $3.60 at $1,812.40 and March Comex silver was last up $0.151 at $23.14 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are mixed near midday 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, and that is limiting the upside in the safe-haven metals. 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, hitting a five-week high early on, and now trading around $75.85 a barrel. The U.S. dollar index is slightly up. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.472%.

Technically, February gold futures bulls have the overall near-term technical advantage and are working on a near-term price uptrend. Bulls’ next upside price objective is to produce a close above solid resistance at $1,840.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at today’s high of $1,821.60 and then at $1,825.00. First support is seen at $1,800.00 and then at last week’s low of $1,785.00. Wyckoff's Market Rating: 6.5.

March silver futures bears still have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. Silver bulls' next upside price objective is closing 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 today’s high of $23.48 and then at $23.75. Next support is seen at this week’s low of $22.655 and then at $22.44. Wyckoff's Market Rating: 3.5.

March N.Y. copper closed down 310 points at 444.10 cents today. Prices closed nearer the session low and hit a four-week high early on today. The copper bulls have the overall near-term technical advantage as they are working on a near-term price uptrend. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 477.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 425.00 cents. First resistance is seen at the November high of 451.15 cents and then at 455.00 cents. First support is seen at 440.00 cents and then at this week’s low of 434.50 cents. Wyckoff's Market Rating: 6.0.

By Jim Wyckoff

For Kitco News

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