Gold and silver gain as bulls proving resilient

(Kitco News) - Gold and silver futures prices are higher in midday U.S. dealings Tuesday. Bulls are enjoying the near-term technical advantage as prices have been trending higher recently, and that is prompting mostly chart-based traders to step in to buy the recent dips. Bulls are also showing strength despite this week's sharply rising bond yields and a rally in the U.S. dollar index. February gold futures were last up $14.90 at $1,815.00 and March Comex silver was last up $0.26 at $23.07 an ounce.

Global stock markets were mostly firmer overnight. U.S. stock indexes are mixed at midday and at or near record highs. "Risk-on" is the mantra of most traders and investors early in the new year. This comes despite the Omicron variant of the coronavirus still spreading like wildfire in many countries. The U.S. reported over 1 million new cases on Monday, which is a global record. Ideas of stronger U.S. and global economic growth in 2022, and that coronavirus is serious but manageable are keeping marketplace attitudes mostly upbeat.

The key "outside markets" today see Nymex crude oil futures prices up and trading around $77.25 a barrel. The U.S. dollar index is higher again today. The yield on the U.S. 10-year Treasury note is presently fetching 1.67%. U.S. bond yields have been on the rise for three weeks and have taken a big jump this week. Don't be surprised to see renewed inflation concerns hit the marketplace in the near term and sap risk appetite, as bond yields are likely to continue to rise.

Technically, February gold futures bulls have the overall near-term technical advantage and are still working on a near-term price uptrend. Bulls' next upside price objective is to produce a close above solid resistance at $1,840.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,785.00. First resistance is seen at $1,821.60 and then at $1,825.00. First support is seen at $1,800.00 and then at last week's low of $1,789.10. Wyckoff's Market Rating: 6.5

March silver futures bears have the overall near-term technical advantage. Recent price action suggests a market bottom is in place. Bulls are working on a price uptrend but need to show more power soon to keep it alive. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $21.41. First resistance is seen at the December high of $23.48 and then at $23.75. Next support is seen at last week's low of $22.60 and then at $22.185. Wyckoff's Market Rating: 3.5.

March N.Y. copper closed up 520 points at 447.35 cents today. Prices closed near the session high today. The copper bulls 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 October high of 477.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 425.00 cents. First resistance is seen at the November high of 451.15 cents and then at 455.00 cents. First support is seen at 440.00 cents and then at this week's low of 433.50 cents. Wyckoff's Market Rating: 5.5.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com

www.kitco.com