Gold, silver down as USDX sharply up, Treasury yield rise

(Kitco News, Tues. Jan. 16th, 2024) – Gold and silver prices are lower in midday U.S. trading Tuesday, pressured by strong gains in the U.S. dollar index and a rise in U.S. Treasury yields. February gold was last down $15.60 at $2,035.90. March silver was last down $0.214 at $23.115.

U.S. stock index futures are lower at midday. As U.S. traders get back from a long holiday weekend (U.S. markets were closed Monday for the Martin Luther King holiday.) they found elevated risk aversion in the marketplace following weekend Houthi attacks on vessels in the Red Sea, and U.S. and U.K. retaliatory air strikes in Yemen. That helped to push the U.S. dollar index sharply higher today.

In other news, China’s central bank leaving its monetary policy unchanged disappointed those looking for more stimulus amid recent downbeat economic data from the world’s second-largest economy.

The key outside markets today see the U.S. dollar index sharply higher and hitting a four-week high. Nymex crude oil prices are near steady and trading around $72.75 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.043%.

Technically, February gold futures bulls still have the overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,050.00 and then at today’s high of $2,062.80. First support is seen at today’s low of $2,034.60 and then at $2,025.00. Wyckoff’s Market Rating: 6.5.

March silver futures bears have the overall near-term technical advantage. A six-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.895. 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 today’s high of $23.50 and then at last week’s high of $23.72. Next support is seen at $23.00 and then at last week’s low of $22.63. Wyckoff’s Market Rating: 3.5.

March N.Y. copper closed up 320 points at 377.25 cents today. Prices closed nearer the session high today. The copper bears have the overall near-term technical advantage. Prices are in a fledgling downtrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 390.00 cents. The next downside price objective for the bears is closing prices below solid

technical support at 365.00 cents. First resistance is seen at last week’s high of 384.05 cents and then at 388.00 cents. First support is seen at last week’s low of 373.50 cents and then at the December low of 372.90 cents.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com