Gold, Silver See Price Gains on Corrective Rebounds

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Feb 03, 2021 11:33 NY TimeKitco 10AM Silver Fix

(Kitco News, Wed. Feb. 3rd, 2021)– Gold and silver futures prices are trading higher in early U.S. trading Wednesday, on upside corrections from Tuesday’s selling pressure. Rallying global equity markets this week are still a bearish weight on the safe-haven metals. April gold futures were last up $5.30 at $1,838.70 and March Comex silver was last up $0.633 at $27.03 an ounce. 

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins and have made strong recoveries after the recent declines. Stock index prices are back near their recent record highs. Risk appetites are more upbeat this week amid generally good corporate earnings reports and ideas Americans will soon get another stimulus package from the government, along with a boost in federal spending in areas such as infrastructure.

In overnight news, the Euro zone January consumer price index rose 0.9% from December, which was higher than the 0.5% rise that was expected. The December CPI was down 0.3%. While the January number was hotter than expected it is nowhere near problematic inflation. Meantime, the Euro zone services purchasing managers index (PMI) came in at 45.4 in January versus a forecast of 45.0. A reading below 50.0 suggests contraction in the sector.

The key “outside markets” today see the U.S. dollar index near steady after hitting a seven-week high Tuesday. Meantime, Nymex crude oil futures prices are higher and near Tuesday’s 12-month high, trading around $55.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.119%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the U.S. services PMI, the global services PMI, the ISM report on business services, and the weekly DOE liquid energy stocks report.

Technically, the February gold futures bulls and bears are on a level overall near-term technical advantage playing field amid the recent choppy trading. Bears do have momentum at mid-week. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,804.70. First resistance is seen at $1,850.00 and then at Tuesday’s high of $1,866.30. First support is seen at this week’s low of $1,830.40 and then at $1,821.30.

March silver futures bulls still have the overall near-term technical advantage but are now near-term exhausted. Silver bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $30.35 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at the overnight high of $27.26 and then at $27.635. Next support is seen at the overnight low of $26.545 and then at this week’s low of $26.35. 
posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com