Gold, Silver Up As Greenback Continues To Erode

(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Friday, boostedby a weakened U.S. dollar index that hovers near this week's 3.5-year low.There is also a bit of safe-haven demand seen in both metals as a U.S.government shutdown looms. February Comex gold was last up $6.80 an ounce at$1,334.00. March Comex silver was last up $0.086 at $17.035 an ounce.

Thereare growing worries in the marketplace the U.S. government will shut downstarting this weekend, as U.S. lawmakers cannot agree on a budget and PresidentTrump seems willing to close up the government to make a point. The concerns havenot had a major impact on the world marketplace, but have somewhat limitedbuying interest in U.S. equities late this week, and have pressured the U.S. dollar in the foreign exchange market.

Worldstock markets were mostly firmer overnight. U.S. stock indexes are pointedtoward higher openings when the New York day session begins.

Theother key outside market on Friday morning sees Nymex crude oil prices arelower. The International Energy Agency said Friday that U.S. crude oilproduction will climb above 10 million barrels a day in 2018-the highest levelsince 1970. U.S. crude production this year will surpass that of Saudi Arabiaand rival that of Russia, said the IEA. This has worked to dent bullish notionsin the oil market.

U.S.economic data due for release Friday is light and includes the University ofMichigan consumer sentiment survey.

Technically,February gold futures bulls have the overall near-term technical advantage.Prices are in a five-week-old uptrend on the daily bar chart. Bulls' nextupside technical objective is pushing and closing prices above chart resistanceat the September high of $1,365.80. Bears' next near-term downside pricebreakout objective is closing prices below solid technical support at $1,300.00.First support is seen at this week's low of $1,324.30 and then at $1,320.00. Firstresistance is seen at today's high of $1,338.20 and then at this week's high of$1,345.00. Wyckoff's Market Rating: 6.5

Marchsilver bulls have the overall near-term technical advantage. Prices are in a five-week-olduptrend on the daily bar chart, but just barely. The next upside price breakoutobjective is closing futures prices above solid technical resistance at theOctober high of $17.59 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the October low of $16.435. Firstresistance is seen at $17.32 and then at this week's high of $17.45. Nextsupport is seen at this week's low of $16.80 and then at $16.50. Wyckoff'sMarket Rating: 6.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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