(Kitco News) – Gold futures prices are near steady in midday U.S. trading Monday and have erased modest daily losses after hitting a six-week high overnight. Silver prices are seeing good gains and hit a three-month high overnight, but still well off its daily high. There is a stronger “risk-off” trader and investor mentality to start this holiday-shortened trading week, as Covid-19 concerns are back on the marketplace front burner. February gold futures were last down $1.30 at $1,887.60 and March Comex silver was last up $0.482 at $26.51 an ounce.
Global stock markets were down overnight. U.S. stock indexes are lower at midday but well up from daily lows. A look at the daily charts of several markets today sees big daily trading ranges, suggesting markets may have initially over-reacted to the new Covid strain news. Still, the market place shuddered on news of a new and more easily transmissible strain of Covid-19 that has been detected and is spreading rapidly in the U.K. Some European countries have quickly banned travel to and from Britain. The news comes just as the world was beginning to breathe a bit of a sigh of relief because of the rapid deployment of vaccines for Covid-19. This new strain of Covid has overshadowed the weekend agreement between U.S. congressional Democrats and Republicans on a new $900 billion financial aid package for Americans.
Further disrupting the marketplace to start the trading week is the failure of the U.K. and the European Union to reach a smooth Brexit agreement and missing a weekend deadline for such to happen.
The U.S. dollar index is higher at midday but well down from the sharp overnight gains. The other important outside market sees February Nymex crude oil futures prices sharply lower and trading around $47.30 a barrel. These two key outside markets are in a bearish daily posture for the precious metals markets. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.91%.
Technically, the gold bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the November high of $1,973.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,900.00 and then at today’s high of $1,912.00. First support is seen at $1,875.00 and then at today’s low of $1,859.00. Wyckoff’s Market Rating: 6.0
March silver futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $27.00 and then at today’s high of $27.635. Next support is seen at $26.00 and then at $25.50. Wyckoff’s Market Rating: 6.5.
March N.Y. copper closed down 560 points at 357.65 cents today. Prices closed nearer the session low and saw profit taking after hitting a 7.5-year high on 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 360.00 cents and then at the December high of 364.55 cents. First support is seen at today’s low of 354.65 cents and then at 350.00 cents. Wyckoff’s Market Rating: 8.0.
