Jim Wyckoff Monday December 30, 2019 13:35
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Editor’s Note: 2020 is expected to be another year of significant uncertainty and turmoil. But the question is what asset will emerge the victor when the dust settles from the global trade war, Brexit, recession threats, negative bond yields. It’s a showdown of global proportions, so don’t miss all our exclusive coverage on how these factors could impact your 2020 investment decisions.
(Kitco News) – Gold and silver prices are slightly up in midday U.S. futures trading Monday, on a normal pause after prices late last week hit seven-week highs. Bullish charts and ideas of better consumer demand for precious metals in 2020 have been propelling prices. February gold futures were last up $0.70 an ounce at 1,518.70. March Comex silver prices were last up $0.042 at $17.985 an ounce.
A feature in a quieter marketplace recently has been the rally in gold prices. Gold is on track to post its best annual price performance since 2010, with a gain of around 18% for the year.
The markets showed little reaction to the weekend U.S. air strikes against terrorist positions located in Iraq and Syria.
Trader and investor attitudes remain generally upbeat, due in large part to the world’s two largest economies, the U.S. and China, seeing a thaw in the more-than-two-year-old trade war. Most believe a partial trade deal will be signed in January.
The key “outside markets” today see the U.S. dollar index lower. The greenback bulls have faded to end the year. Meantime, Nymex crude oil prices are slightly down and trading close to a multi-month high at around $62.00 a barrel.
Technically, February gold futures bulls have the firm overall near-term technical advantage amid an accelerating price uptrend 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 $1,550.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,491.60. First resistance is seen at $1,520.00 and then at $1,525.00. First support is seen at today’s low of $1,513.50 and then at 1,502.10. Wyckoff’s Market Rating: 6.5.
March silver futures bulls have the firm overall near-term technical advantage amid a fledgling price uptrend in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.50 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 last week’s high of $18.135 and then at $18.25. Next support is seen at $17.81 and then at $17.50. Wyckoff’s Market Rating: 6.5.
March N.Y. copper closed down 40 points at 282.55 cents today. Prices closed nearer the session low today on a mild pullback after hitting a 7.5-month high last week. The copper bulls have the firm overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 295.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at last week’s high of 285.65 cents and then at 288.00 cents. First support is seen 281.45 cents and then at last week’s low of 279.40 cents. Wyckoff’s Market Rating: 6.5.
By Jim Wyckoff