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(Wallace Refiners) – Gold futures prices are trading lower in early U.S. action Friday, due in part to bearish outside markets that include a firmer U.S. dollar index and weaker crude oil prices. Silver prices are a bit firmer. Both safe-haven metals have seen the upside limited this week by not much risk aversion in the global marketplace at present. April gold futures were last down $9.60 at $1,817.20 and March Comex silver was last up $0.093 at $27.14 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Many Asian markets were closed late this week as the Chinese Lunar New Year holiday began, and markets will remain closed until the middle of next week. U.S. markets are closed on Monday for the President’s Day holiday. There is a bit more risk aversion late this week as the newer, highly contagious Covid-19 strain called the South African coronavirus has arrived in the U.S. This strain of the virus is also possibly more resistant to the vaccines. One news headline reads: “U.K. scientist warns new Covid variant will ‘sweep the world.’” Still, it can be argued a late-week pullback in the U.S. stock indexes is just a pause in a bull market run that has seen the indexes hit new record highs this week.
The key “outside markets” today see the U.S. dollar index trading higher. Meantime, Nymex crude oil futures prices are weaker and trading around $57.75 a barrel. The benchmark 10-year U.S. Treasury note yield is currently fetching 1.155%.
U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.
Technically, the February gold futures bears have the overall near-term technical advantage amid a four-week-old price downtrend in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,878.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,784.60. First resistance is seen at the overnight high of $1,827.90 and then at $1,850.00. First support is seen at the overnight low of $1,812.40 and then at this week’s low of $1,807.30. Wyckoff’s Market Rating: 4.0
March silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $30.35 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at Wednesday’s high of $27.595 and then at this week’s high of $27.875. Next support is seen at this week’s low of $26.75 and then at $26.50. Wyckoff’s Market Rating: 6.0.
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