Gold price up on some safe-haven buying, weaker USDX

(Kitco News, Fri. Jan. 19th, 2024) – Gold prices are posting decent gains and silver is slightly up in early U.S. trading Friday. A bit more safe-haven demand is featured in gold heading into the weekend, amid still-heightened tensions in the Middle East. A weaker U.S. dollar index on this day is also a supportive outside-market element for the metals markets. February gold was last up $14.80 at $2,036.40. March silver was last up $0.148 at $22.955.

Asian and European stock markets were mixed to firmer overnight. U.S. stock index futures are set to open higher when the New York day session begins. A late-week rally has the major U.S. stock indexes at or near 12-month highs. Risk aversion in the financial markets has receded despite the higher tensions in the Middle East. Just like the Russia-Ukraine war, it appears that after three months of the Israel-Hamas war, traders and investors have become numb to the matter, from a financial markets perspective.

There was no major, markets-moving news overnight, which has allowed some better risk appetite in the marketplace to end the trading week.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are near steady and trading around $74.00 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.128%.

U.S. economic data due out Friday includes existing home sales, Treasury international capital data and the University of Michigan consumer sentiment survey.

Technically, the gold futures bulls have the overall near-term technical advantage but are fading a bit. Prices are still in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at this week’s high of $2,062.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,040.00 and then at $2,050.00. First support is seen at today’s low of $2,022.20 and then at Thursday’s low of $2,007.70.

The silver bears have the overall near-term technical advantage. Prices are in a choppy, five-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing March futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $22.26. First resistance is seen at $23.11 and then at this week’s high of $23.50. Next support is seen at this week’s low of $22.52 and then at $22.26.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com