(Kitco News) - Gold and silver futures prices are sharply higher in midday U.S. trading Tuesday. On this day the precious metals bulls appear to be focusing on the prospects of more U.S. liquidity in the marketplace and some upbeat economic news from China sparking better consumer demand for gold, and also the potential for problematic inflation down the road. The gains in gold and silver come despite keener risk appetite in the marketplace this week. February gold futures were last up $23.60 at $1,855.80 and March Comex silver was last up $0.623 at $24.67 an ounce.
Global stock markets were mostly higher overnight. U.S. stock indexes are higher at midday. It’s risk-on for traders and investors so far this week. The first U.S. Covid-19 vaccines have been rolled out to health care professionals, to hopefully turn the tide on the pandemic, which is the worst respiratory pandemic in over 100 years, since the 1918 Spanish flu. The U.S. Congress appears to be making progress on a slightly slimmed-down ($748 billion) U.S. financial aid package for Americans. Also, reports this week say the U.K. and the European Union have extended the deadline to complete a deal on a smooth Brexit.
In overnight news, China’s economic recovery continued in November. China’s industrial production rose 7.0% versus 6.9% growth in October and 6.8% forecast, year-on-year. China’s retail sales rose 5.0% in November versus 4.3% growth in October and up 5.5% forecast, year-on-year. China’s economic growth comes as other major industrial economies are dealing with new lockdowns due to the spreading Covid-19. Total pandemic U.S. deaths this week surpassed 300,000, with some health experts predicting another 100,000 Americans will die from the virus by the end of January.
The U.S. Federal Reserve’s Open Market Committee (FOMC) meeting began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The marketplace will parse words and comments from Fed officials, for clues on U.S. monetary policy direction in 2021. Most believe the Fed will keep its very accommodative monetary policy.
The U.S. dollar index is lower early today after hitting another 2.5-year low on Monday. The other important outside market sees January Nymex crude oil futures prices higher and trading around $47.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.9%.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, February gold futures bulls and bears are on a level overall near-term technical playing field and the bulls are showing just enough power to ward off more serious chart damage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,859.30 and then at the December high of $1,879.80. First support is seen at today’s low of $1,828.50 and then at this week’s low of $1,820.00. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
March silver futures bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $26.27 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at the December high of $25.015 and then at $25.50. Next support is seen at $24.00 and then at last week’s low of $23.63. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed up 190 points at 354.55 cents today. Prices closed near the session high today. Prices hit a 7.5-year high last Friday. The copper bulls have the strong overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at today’s high of 355.60 cents and then at 360.00 cents. First support is seen at today’s low of 350.00 cents and then at 345.00 cents. Wyckoff's Market Rating: 8.5.
