Gold, Silver See Solid Price Gains Despite Risk-On Attitudes

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Dec 15, 2020 12:05 NY TimeKitco 10AM Silver Fix

(Kitco, News, Tues. Dec. ) – Gold and silver futures prices are sharply higher in early U.S. trading Tuesday. On this day the precious metals bulls appear to be focusing on the prospects of more U.S. liquidity in the marketplace and some upbeat economic news from China sparking better consumer demand for gold, and also the potential for problematic inflation down the road. The gains in gold and silver come despite keener risk appetite in the marketplace early this week. February gold futures were last up $20.30 at $1,852.40 and March Comex silver was last up $0.468 at $24.52 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. It’s risk-on for traders and investors early this week. The first U.S. Covid-19 vaccines have been rolled out to health care professionals, to hopefully turn the tide on the pandemic, which is the worst  respiratory pandemic in over 100 years, since the 1918 Spanish flu. The U.S. Congress appears to be making progress on a slightly slimmed-down ($748 billion) U.S. financial aid package for Americans. Also, reports this week say the U.K. and the European Union have extended the deadline to complete a deal on a smooth Brexit.

In overnight news, China’s economic recovery continued in November. China’s industrial production rose 7.0% versus 6.9% growth in October and 6.8% forecast, year-on-year. China’s retail sales rose 5.0% in November versus 4.3% growth in October and up 5.5% forecast, year-on-year. China’s economic growth comes as other major industrial economies are dealing with new lockdowns due to the spreading Covid-19. Total pandemic U.S. deaths this week surpassed 300,000, with some health experts predicting another 100,000 Americans will die from the virus by the end of January.

The U.S. Federal Reserve’s Open Market Committee (FOMC) meeting begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The marketplace will parse words and comments from Fed officials, for clues on U.S. monetary policy direction in 2021. Most believe the Fed will keep its very accommodative monetary policy.

The U.S. dollar index is weaker early today after hitting another 2.5-year low on Monday. The other important outside market sees January Nymex crude oil futures prices slightly higher and trading around $47.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.9%.

U.S. economic data due for release Tuesday includes the Empire State manufacturing index, import and export prices, industrial production and capacity utilization, and Treasury international capital data.

Technically, the February gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the December high of $1,879.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,767.20. First resistance is seen at $1,858.00 and then at $1,879.80. First support is seen at the overnight low of $1,828.50 and then at this week’s low of $1,820.00.

March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the November high of $26.27 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at $24.75 and then at the December high of $25.015. Next support is seen $24.00 and then at last week’s low of $23.63. 

Postred by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com