Gold Powers To 7-Mo. High On Safe-Haven, Technical Buying
Jim Wyckoff Jim Wyckoff
Tuesday January 29, 2019 08:31
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(Kitco News) – Gold prices are moderately up and scored another seven-month high in early U.S. trading Tuesday, boosted by safe-haven demand and chart-based buying interest. There are several elements at work this week which are causing some anxiety among traders and investors. February gold futures were last up $5.60 an ounce at $1,308.60. March Comex silver hit a three-week high and was last up $0.12 at $15.885 an ounce.
European and Asian stock markets were narrowly mixed overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.
The news elements at work early this week, which are making traders and investors a bit nervous, include:
The U.S.-China trade war that has been playing out for months finds high-level officials from both countries meeting in Washington, D.C, on Wednesday and Thursday. There is no consensus on any progress that may or may not be made at this week’s talks, but stock and financial market traders are this week leaning to the negative side of any successful outcome. The U.S. government this week has filed new charges against the high-tech company from China, Huawei. Comments from U.S. and Chinese officials have been all over the map recently.
The political situation in Venezuela is still very fluid at present, with the potential for civil violence. The U.S. on Monday slapped economic sanctions on the country, which is a major oil producer.
The Federal Reserve’s Open Market Committee (FOMC) meets on Tuesday morning through Wednesday at midday, with a statement on monetary policy on Wednesday afternoon. No change in monetary policy is expected. Markets could become active and volatile following the results of the meeting, which includes a press conference by Fed Chairman Jerome Powell. Powell is getting a reputation for putting his foot in his mouth while making comments to the press or at speeches.
The U.K. parliament on Tuesday votes on the “Plan B” Brexit initiative from Prime Minister Theresa May. May’s last Brexit plan was voted down a few weeks ago and May survived a no-confidence vote by Parliament.
The outside markets today see the U.S. dollar index trading slightly higher. Meantime, Nymex crude oil prices are firmer and trading around $52.50 a barrel.
U.S. economic reports due for release Tuesday include the weekly Goldman Sachs and Johnson Redbook retail sales reports, advance economic indicators, S&P/Core-Logic home indexes, and the consumer confidence index.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com