Gold showing resilience amid upbeat trader/investor moods

(Kitco News) - Gold prices have traded narrowly on both sides of unchanged, but are just a bit weaker near midday Monday. The safe-haven metals bulls are hanging tough in the face of a geopolitical atmosphere that has brightened recently. A depreciating greenback on the world foreign exchange market is limiting selling interest in the precious metals markets. February gold futures were last down $2.40 an ounce at 1,478.80. March Comex silver prices were last up $0.058 at $17.07 an ounce.

Asian and European stock indexes were higher overnight. The U.S. stock indexes are up and at or very near record highs at midday today. Risk appetite is keener to start the trading week as events last week cleared up a lot of uncertainty in the world marketplace. The U.S. and China have reached a partial trade deal, U.K. Prime Minister Boris Johnson won an election mandate on Brexit, and the U.S. reached a trading deal with its neighbors, Canada and Mexico.

China also got some upbeat economic data Monday, as its industrial output in November was up 6.2%, year-on-year, beating market expectations for a rise of 5.0%. It could be that traders of the safe-haven metals are now more focused more on the bullish aspect of better demand for gold from China if its economy performs better (China is aa leading consumer of gold worldwide), even if the geopolitical situation of the China-U.S. trade war de-escalating is limiting safe-haven demand for gold and silver, globally.

The key “outside markets” today see the U.S. dollar lower. The USDX hit a 4.5-month low last Friday. Meantime, Nymex crude oil prices are near steady and trading around $60.00 a barrel.

Technically, February gold futures bulls and bears are still on a level overall near-term technical playing field amid recent choppy and sideways trading. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the November low of $1,453.10. First resistance is seen at today’s high of $1,484.50 and then at the December high of $1,491.60. First support is seen at $1,470.00 and then at last week’s low of 1,463.00. Wyckoff's Market Rating: 5.0.

March silver futures bears still have the slight overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at last week’s high of $17.185 and then at the December high of $17.415. Next support is seen at $16.82 and then at the Decembers low of $16.565. Wyckoff's Market Rating: 4.5.

March N.Y. copper closed up 290 points at 281.00 cents today. Prices closed nearer the session high and closed at a 4.5-month high close today. The copper bulls have the overall near-term technical advantage and have upside momentum. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 295.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 270.00 cents. First resistance is seen at last week’s high of 283.10 cents and then at 285.00 cents. First support is seen at today’s low of 278.15 cents and then at 275.00 cents. Wyckoff's Market Rating: 6.5.