Moderate gold price gains on safe-haven buying

(Kitco News, Tues. Jan. 30th, 2024) – Gold prices are firmer in early U.S. trading Tuesday, on some more safe-haven demand after a weekend terrorist strike in Jordan killed three U.S. soldiers. Now the world anxiously awaits the U.S. military’s response. April gold was last up $9.10 at $2,053.70. March silver was last down $0.011 at $23.24.

Asian stock markets were mixed in overnight trading, while European stock indexes were mostly up. U.S. stock index futures are set to open slightly lower when the New York day session begins. Risk aversion remains keener early this week after an Iran-backed Houthi drone strike against U.S. troops in Jordan last weekend killed three U.S. soldiers. President Biden said the U.S. would respond.

Meantime, the U.S. economic data point of the week is the Open Market Committee meeting of the Federal Reserve that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is not expected to change U.S. monetary policy at this meeting but will likely give fresh guidance on futures policy plans.

Some interesting news headlines this morning: “Europe’s stagnating economy falls further behind the U.S.”—Wall Street Journal. “GM went all-in on electric cars, but dealers say they want hybrids.”—WSJ. “China’s wobbles could throw the global economy off its axis”—Barrons.

The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are near steady and trading around $77.00 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.062%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the monthly house price index, the S&P Core Logic Case-Shiller home indexes, and the job openings and labor turnover (JOLTS) survey.

Technically, the gold futures bulls have the slight overall near-term technical advantage but have faded. A three-month-old uptrend on the daily bar chart has been negated and prices are now in a seven-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures 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 the overnight $2,059.20 and then at $2,075.00. First support is seen at the overnight low of $2,047.40 and then at Monday’s low of $2,037.70. At

The silver bears have the overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing March futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at the overnight high of $23.385 and then at $23.72. Next support is seen at $23.00 and then at $22.765.

Posted by:

Jack Dempsey , President

401 Gold Consultants LLC

jdemp2003@gmail.com