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(Kitco News) – Gold and silver prices were higher in early US trading on Tuesday. Key foreign markets are bullish on the day for precious metals as the U.S. dollar index is weaker, crude oil prices firmer and U.S. Treasury yields edged lower to start a holiday-shortened trading week. February gold was last up $12.90 at $1,816.90 and March silver was up $0.385 at $24.305.
Global equity markets were mixed to firmer overnight. US stock indexes are headed for higher opens when the daily session begins in New York. The market is quieter after the Christmas weekend when the markets are closed on Monday.
The relaxation of China’s strict Covid policies remains in focus, with the market wondering whether the U-turn by Chinese authorities will spur faster growth in the world’s second-largest economy. Or, will the pivot cause such a spike in Covid infections that China’s economy will be further damaged in the near future?
In key foreign markets today, the US dollar index is lower. Nimek crude oil prices are on the rise and are trading around $80.25 per barrel. Meanwhile, the yield on the benchmark 10-year US Treasury bond currently stands at 3.777%.
U.S. economic data due on Tuesday includes the preliminary economic indicators report, the monthly U.S. home price index, the S&P-CoreLogic Case-Shiller home price index and the Texas manufacturing outlook survey.
Technically, gold futures bulls have an overall short-term technical advantage. Prices are in a seven-week uptrend on the daily chart. The next goal for the Bulls is to close the futures above solid resistance at $1,900.00 in February. The Bears’ next short-term downside objective is pushing the futures price below solid technical support at $1,775.00. The first resistance is seen at $1,825.00, followed by last week’s high of $1,833.80. First support is seen at today’s low of $1,808.00 and then at $1,800.00. Vickoff’s Market Rating: 6.5.
Silver bulls have a solid overall short-term technical advantage. There is a choppy, four-month uptrend on the daily bar chart. The silver bulls’ next upside target is a close of March futures above solid technical resistance at $25.00. The next downside target for the bears is a close below solid support at $22.00. The first resistance is seen at the December high of $24.525 and then at $25.00. The next support is $24.00 and then $23.55. Vickoff’s Market Rating: 7.5.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither did Kitco Metals Inc. nor can the author guarantee such accuracy. This article is for informational purposes only. It is not a solicitation of any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for losses and/or damages arising from the use of this publication.