Gold price loses healthy daily gains, but silver bulls hit the gas

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(Wallace Refiners) – Gold futures prices are near steady in midday U.S. trading Monday and lost solid early gains. The U.S. stock indexes hitting record highs today and a rebound in the U.S. dollar index hit the gold market as the session progressed. Yet silver forged ahead and futures prices are poised to close at a 13-week-high close today. February gold futures were last down $2.40 at $1,880.90 and March Comex silver was last up $0.642 at $26.55 an ounce.

Global stock markets were mostly up overnight. The marketplace has been buoyed by President Trump in a surprise move over the weekend signing the Covid-19 aid bill that the U.S. Congress agreed upon just before Christmas. The bill provides direct payments to Americans and also loans to U.S. businesses.

Traders and investors are also more upbeat as Covid vaccines continued to be rolled out in the U.S. and Europe. Still the enthusiasm is tempered by the pandemic that continues to be out of control in the U.S., Europe and other parts of the world. Some health experts are saying January will be the worst month yet, as far as the human toll. Restrictions on many businesses in many locations remain in place and may get tighter in January.

The U.S. dollar index is near steady in midday trading. The other important outside market sees February Nymex crude oil futures prices slightly down and trading around $48.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently around 0.956%.

Technically, February gold futures bulls have the overall near-term technical advantage amid a four-week-old price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the November high of $1,973.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,820.00. First resistance is seen at $1,900.00 and then at the December high of $1,912.00. First support is seen at today’s low of $1,873.00 and then at last week’s low of $1,859.00. Wyckoff’s Market Rating: 6.0.

March silver futures prices were poised to close at a 13-week high close. Silver futures bulls have the firm overall near-term technical advantage amid a four-week-old price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the December high of $27.635 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at today’s high of $26.98 and then at $27.635. Next support is seen at $26.00 and then at $25.50. Wyckoff’s Market Rating: 6.5.

March N.Y. copper closed up 75 points at 357.00 cents today. Prices closed nearer the session low today. The copper bulls have the solid overall near-term technical advantage as prices hover near a nearly eight-year high scored this month. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 370.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at today’s high of 361.80 cents and then at the December high of 364.55 cents. First support is seen at 353.00 cents and then at 350.00 cents. Wyckoff’s Market Rating: 8.0.