(Kitco News) – Gold prices ended the U.S. day session sharply higher, hit an eight-month high and came within a whisker of touching $1,200.00 on Monday. Strong safe-haven demand was featured as world stock markets are again under selling pressure to start the trading week. Chart-based buying interest is also prevalent as gold prices are presently in a near-term uptrend. And the weakening U.S. dollar index recently is also working in favor of the precious metals market bulls. April Comex gold was last up $39.40 at $1,197.00 an ounce. March Comex silver was last up $0.617 at $15.415 an ounce.
There was keen risk aversion in the marketplace Monday as most world stock markets were under selling pressure. U.S. stock indexes were seeing solid losses and at or near fresh for-the-move lows in afternoon trading Monday. Dropping crude oil prices are once again being blamed for weakening equities prices. Nymex crude oil prices were trading just below $30.00 a barrel in afternoon action Monday. U.S. Treasuries were also seeing safe-haven buying interest Monday.
Some Asian markets, including China’s, were closed Monday for the Lunar New Year holiday.
U.S. economic data due for release Monday was light. The pace picks up as this week progresses.
Technically, April gold futures prices hit an eight-month high today and closed nearer the session high. Prices are in an accelerating seven-week-old uptrend and the bulls have technical momentum and the firm near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at 1,150.00. First resistance is seen at $1,200.00 and then at $1,210.00. First support is seen at $1,190.00 and then at $1,180.00. Wyckoff’s Market Rating: 7.0
March silver futures prices closed nearer the session high and hit a 3.5-month high today. The big rally in gold and a weaker U.S. dollar index recently have helped the silver market bulls. The silver market bulls now have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. A bullish “rounding-bottom” reversal pattern has also formed on the daily chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.60. First resistance is seen at today’s high of $15.465 and then at $15.75. Next support is seen at $15.00 and then at today’s low of $14.90. Wyckoff’s Market Rating: 6.0.
March N.Y. copper closed down 150 points at 208.80 cents today. Prices closed near mid-range today. The copper bears have the overall near-term technical advantage but the bulls have gained some upside momentum recently. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at 220.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 200.00 cents. First resistance is seen at today’s high of 210.65 cents and then at last week’s high of 213.80 cents. First support is seen at today’s low of 207.10 cents and then at 205.00 cents. Wyckoff’s Market Rating: 2.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
