Gold, Silver Slightly Up As U.S. Dollar Weakness Resumes

(Kitco News) - Gold and silver markets are modestly higher in early U.S. trading Tuesday. A weakerU.S. dollar index is working in favor of the precious metals market bulls onthis day. April Comex gold futures were last up $0.90 an ounce at $1,345.80. March Comex silver was last up $0.043 at $17.185 an ounce.

Worldstock markets were mostly weaker overnight. U.S. stock indexes are pointedtoward lower openings when the New York day session begins. The equitiesmarkets worldwide are a bit worried about rising bond yields. The U.S. 10-yearnote rose to a more-than-three-year high yield Monday. If the global stockmarkets finally come off their highs in significant fashion, such would bebullish for the competing asset class of gold and silver.

Inovernight news, the Euro zone reported its fourth-quarter gross domesticproduct at up 0.6% from the third quarter and up 2.7%, year-on-year. Thosenumbers were in line with market expectations.

Thisis a busy events week for the marketplace. Tuesday evening President Trumpdelivers his state-of-the-union speech. The Federal Open Market Committee(FOMC) meets Tuesday and Wednesday, which will be Fed Chair Janet Yellen’s lastmeeting. And on Friday the monthly U.S. employment situation report from theLabor Department is due out.

Thekey “outside markets” on Tuesday morning see the U.S. dollar index lower andnot far above last week’s 3.5-year low. Meantime, Nymex crude oil prices arealso lower and trading around $65.00 a barrel. A rising U.S. oil rig count,reported last Friday, is bearish for oil this week.

U.S.economic data due for release Tuesday includes the weekly Johnson Redbook andGoldman Sachs retail sales reports, the S&P/Case-Shiller home price index,the consumer confidence index, and the FOMC meeting begins.

Technically,April gold futures bulls have the overall near-term technical advantage. Pricesare still in a six-week-old uptrend on the daily bar chart, but the bulls needto show fresh power soon to keep it in place. Bulls’ next upside technicalobjective is pushing and closing prices above chart resistance at the Januaryhigh of $1,370.50. Bears' next near-term downside price breakout objective isclosing prices below solid technical support at $1,320.00. First support isseen at today’s low of $1,337.50 and then at $1,330.00. First resistance isseen at $1,350.00 and then at Monday’s high of $1,356.30. Wyckoff’s MarketRating: 6.5

Marchsilver bulls have the overall near-term technical advantage. A choppy,six-week-old price uptrend is in place on the daily bar chart. The next upsideprice breakout objective is closing futures prices above solid technicalresistance at $18.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the January low of $16.735. Firstresistance is seen at today’s high of $17.26 and then at Monday’s high of $17.47.Next support is seen at $17.00 and then at the January low of $16.735.Wyckoff's Market 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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