(Kitco News) - Gold and silver prices are higher in early-afternoon U.S. trading Monday, as the weekend agreement reached between the U.S. and China to a temporary halt their heretofore escalating trade war has prompted some hopes of better worldwide demand for precious metals. Gold prices pushed to a three-week high today. February gold futures were last up $12.00 an ounce at $1,237.90. March Comex silver was up $0.288 at $14.505 an ounce.
Risk appetite was back in full force to start the trading week, following the weekend news out of the G20 meeting in Argentina that the U.S. and China have agreed on a cease-fire in their trade war. Asian and European stock markets rallied sharply, while crude oil prices were also posting good gains on hopes for better world economic growth if the two largest economies stop their trade hostilities. U.S. stock indexes are solidly higher at midday, but well off their daily highs.
The U.S. dollar index is lower today as secondary world currencies were boosted on the U.S.-China truce. That’s a bullish outside market force for the metals markets. There are notions a U.S.-China trade agreement would lessen demand for the safe-haven greenback and make the secondary currencies look more attractive.
The U.S.-China trade cease-fire gave traders and investors a double-barrel shot of upbeat news, following last week’s surprisingly dovish comments coming from Federal Reserve Chairman Jay Powell.
In other news, the OPEC oil cartel meeting is getting under way in Vienna, Austria. Reports said Qatar plans to pull out of the cartel in January. Oil prices were also lifted today in part on comments from Russian and Saudi Arabian officials that they want to extend production cuts.
The death of former U.S. President George H.W. Bush over the weekend gives the U.S. financial markets an unexpected mid-week closure on Wednesday, for a national day of mourning. Other U.S. markets trade normal hours Wednesday.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically, the gold bears still have the overall near-term technical advantage but a price downtrend has been negated and a fledgling uptrend line is now in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in February futures above solid technical resistance at the October high of $1,252.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the November low of $1,202.00. First resistance is seen at today’s high of $1,240.40 and then at $1,245.00. First support is seen at $1,230.00 and then at today’s low of $1,226.60. Wyckoff's Market Rating: 4.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
The silver bears still have the firm overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing March futures prices above solid technical resistance at the October high of $15.055 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $13.985. First resistance is seen at $14.66 and then at $14.75. Next support is seen at today’s low of $14.28 and then at last week’s low of $14.115. Wyckoff's Market Rating: 2.5.
March N.Y. copper closed up 205 points at 280.80 cents today. Prices closed nearer the session low today after hitting a two-month high early on. The copper bears have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 288.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 266.20 cents. First resistance is seen at today’s 285.00 cents and then at 288.80 cents. First support is seen at 276.85 cents and then at 275.00 cents. Wyckoff's Market Rating: 4.5.
