Gold, Silver Prices See Corrective Bounces at Mid-Week

Live Spot Gold

SPOT MARKET IS OPEN
closes in 5 hrs. 54 mins.Jan 15, 2020 11:06 NY Time

Silver Price & PGMs

Jan 15, 2020 11:06 NY TimeKitco 10AM Silver Fix

Click on the metal names to
see the associated charts

(Kitco News, Wed. Jan. 15th, 2020) – Gold and silver prices are firmer in early U.S. futures trading Wednesday. The metals are seeing rebounds following recent selling pressure and as global stock markets on Wednesday are pausing from their recent rallies that pushed U.S. indexes to record highs Tuesday. February gold futures were last up $4.70 an ounce at 1,549.30. March Comex silver prices were last up $0.048 at $17.79 an ounce. 

Asian and European stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. 

The marketplace at mid-week is focused on the U.S.-China partial trade agreement that is scheduled to be signed Wednesday in Washington, D.C. China has pledge to buy $200 billion in U.S. goods over the next two years. Specifics on what amounts spent on what products are not likely to be revealed at the signing. There is some concern in the marketplace that the trade deal will not have the U.S. lifting its trade tariffs on China imports until later this year, which has put some mild pressure on global stock markets. However, those who have followed the trade negotiations more closely say the timing of lifting of U.S. tariffs has been known by the Chinese and others for quite some time. The U.S.-China partial trade deal is expected to boost global economic growth in 2020. Still, don’t expect U.S.-China trade and other political differences to just completely disappear after the signing today.

In other overnight news, economic growth in the European Union’s workhorse country, Germany, fell to a six-year low in 2019, at only 0.6% annual expansion. Meantime, Euro zone industrial growth was up 0.2% in November but down 1.5%, year-on-year, it was reported today.

Technically, the gold bulls have the overall near-term technical advantage, but the January spike high is strong chart resistance to overcome. A price uptrend is still in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the September high of $1,571.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,525.00. First resistance is seen at the overnight high of $1,554.70 and then at this week’s high of $1,563.10. First support is seen at the overnight low of $1,546.50 and then at this week’s low of $1,536.40.