Jim Wyckoff Wednesday January 15, 2020 13:21
Share this article:
Gold and silver prices are higher and near their daily highs in midday U.S. futures trading Wednesday. The metals are seeing good rebounds following recent selling pressure. A lower U.S. dollar index today did work in favor of the precious metals market bulls. February gold futures were last up $9.90 an ounce at 1,554.50. March Comex silver prices were last up $0.258 at $18.00 an ounce.
The marketplace at mid-week was focused on the U.S.-China partial trade agreement that was just signed at midday Wednesday in Washington, D.C. China has pledged to buy $200 billion in U.S. goods over the next two years. The U.S.-China partial trade deal is expected to boost global economic growth in 2020, and that can be read as bullish for the metals and the raw commodity sector as it suggests better global demand.
The geopolitical front remains calm, which is bearish for the safe-haven metals and is allowing continued flow of investor funds into equities markets. The U.S. stock indexes have hit new record highs this week.
The other key outside market today sees crude oil prices weaker and trading around $58.00 a barrel.
Technically, February gold futures bulls have the overall near-term technical advantage as a two-month-old price uptrend in still place on the daily bar chart. And the bulls regained some footing today. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,571.70. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,525.00. First resistance is seen at this week’s high of $1,563.10 and then at $1,571.70. First support is seen at today’s low of $1,546.50 and then at this week’s low of 1,536.40. Wyckoff’s Market Rating: 6.5
March silver futures bulls have slight the overall near-term technical advantage and regained some footing today. An uptrend on the daily bar chart has been at least temporarily negated. 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 this week’s high of $18.13 and then at $18.25. Next support is seen at this week’s low of $17.69 and then at $17.50. Wyckoff’s Market Rating: 5.5.
March N.Y. copper closed down 50 points at 287.85 cents today. Prices closed near the session high. Prices Tuesday hit an eight-month high today. The copper bulls have the firm overall near-term technical advantage. A four-month-old uptrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 275.95 cents. First resistance is seen at this week’s high of 287.30 cents and 290.00 cents. First support is seen at today’s low of 283.65 cents and then at this week’s low of 280.55 cents. Wyckoff’s Market Rating: 7.5.