(Kitco News) - Gold prices are moderately higher in midday U.S. futures trading Monday, and hit a three-week high overnight. Safe-haven demand for gold was featured today as the weekend saw the coronavirus outbreak spread significantly. However, gains in the metals are being somewhat tempered by the steep drop in crude oil prices, which hit a 3.5-month low today. February gold futures were last up $7.10 an ounce at 1,578.90. March Comex silver prices were last down $0.033 at $18.08 an ounce.
Asian and European stock markets were solidly down overnight. U.S. stock indexes are sharply lower at midday. Over the weekend the coronavirus illness that apparently originated in China has rapidly spread, killing over 80 of its citizens, with nearly 8,500 cases now reported in China. Several Chinese cities are under quarantine.
Several cases are now reported in the U.S. as doctors are now saying the illness is more easily contractable. There are increasing worries the outbreak could hurt world economic growth. Raw commodity prices, including crude oil, are slumping. This week is the Chinese Lunar New Year holiday—the most important holiday in China. Chinese authorities have extended the week-long holiday by two days due to the coronavirus outbreak, hoping citizens will stay home longer.
The key outside markets today see crude oil prices sharply lower, at a 3.5-month low, and trading around $52.75 a barrel. Meantime, the U.S. dollar index is firmer and hit a seven-week high, as the USDX is now trending up.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, February gold futures prices were nearer the session low at midday today after hitting a three-week high early on. The bulls have the firm overall near-term technical advantage as a two-plus-month-old price uptrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,613.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,550.00. First resistance is seen at today’s high of $1,588.40 and then at $1,600.00. First support is seen at today’s low of $1,575.30 and then at 1,570.00. Wyckoff's Market Rating: 7.0.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
March silver futures prices were near the session low today after hitting a two-week high early on. The silver bulls have the slight overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the January high of $18.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today’s high of $18.375 and then at $18.50. Next support is seen at $18.00 and then at the January low of $17.59. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed down 795 points at 260.45 cents today. Prices closed near the session low and hit a 3.5-month low today. The copper bears have the firm overall near-term technical advantage amid a steep price downdraft occurring. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the September low of 249.35 cents. First resistance is seen at 265.00 cents and then at today’s high of 267.30 cents. First support is seen at today’s low of 259.15 cents and then at 257.50 cents. Wyckoff's Market Rating: 3.0.
