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Gold prices are up and hit a more-than-three-month high in early U.S. trading Tuesday. A slumping U.S. dollar index that hit a better-than-three-month low today is bullish for the precious metals markets. Gold and silver markets are also seeing safe-haven demand on heightened geopolitical risks. February Comex gold was last up $4.50 an ounce at $1,313.90. March Comex silver was last down $0.02 at $17.12 an ounce.
A feature in the marketplace early this week are rising tensions in Iran as demonstrators in that country are demanding an overthrow of the ruling government. There has been a violent crackdown on the demonstrators by the Iranian government. U.S. President Donald Trump has tweeted that he supports the demonstrators, which is a dramatic shift from the Obama administration that was much more low key on such matters.
North Korea has made an overture to South Korea for negotiations, but is also maintaining it plans to ramp up its production of nuclear weapons, including leader Kim Jong Un reportedly saying he as a nuclear button on his desk.
The other key outside markets on Tuesday morning finds Nymex crude oil prices near steady on the day after hitting a 2.5-year high above $60.00 a barrel overnight. A supply disruption in the North Sea and the Iran demonstrations are supporting the oil market. The recent rally in oil prices is bullish for the precious metals and the entire raw commodity sector.
U.S. economic data due for release Tuesday includes the U.S. and global manufacturing purchasing managers indexes.
Technically,February gold futures bulls have the overall near-term technical advantage. Prices are in a steep three-week-old uptrend on the daily bar chart. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,340.00. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at $1,280.00. First support is seen at today’s low of $1,304.60 and then at $1,300.00. First resistance is seen at $1,320.00 and then at $1,325.00.
March silver bulls and bears are on a level overall near-term technical playing field. However, recent gains suggest a market bottom is in place and that more upside is attainable. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.435. First resistance is seen at last week’s high of $17.175 and then at $17.25. Next support is seen at $17.00 and then at last Friday’s low of $16.865.
1/2/2018
Kitco
