More price gains in gold, silver; charts turn more bullish

(Kitco News, Tuesday. Jan. 6 th, 2026) – Gold and silver prices are higher again in early U.S. trading Monday, on safe-haven demand following the weekend U.S. raid in Venezuela that captured its dictator but more importantly has precious metals traders pondering what lies ahead, geopolitically, in the coming months. The near-term technical postures for gold and silver have also markedly improved the past week. February gold was last up $20.80 at $4,472.70. March silver prices were up $1.553 at $78.20.

There’s an old market adage that says the bond market traders are the smartest guys/gals in the room. That may be the case most of the time, but I’m going to argue precious metals traders, at present, appear to be the smartest in the room. Reason: While stock and financial markets are taking the U.S. raid on Venezuela mostly in stride, with some global stock indexes hitting record highs this week and other markets mostly calm, it appears precious metals traders are more wisely looking over the horizon and pondering what the U.S. raid in Venezuela may mean for the geopolitical front in the coming months. For example, President Trump has warned other Central and South American countries about their illicit drug shipments to the U.S. and has said the U.S. will re-exert its influence in the Western Hemisphere. Trump has also expressed interest in the U.S. acquiring Greenland. A Blomberg report today said if the U.S. takes over Greenland, the NATO defense organization would be dead. China, Russia and other nations have criticized the U.S. for its raid on Venezuela, but China may have just gotten the door open a little more in its intent to reclaim Taiwan—so it can beef up its own dominance in the Eastern Hemisphere. And after the U.S.-Isreal major air strikes against Iran last summer, that nation has become politically unstable with civil unrest growing. Meantime, war-torn Russia’s President Putin is watching it all unfold amid Russia’s own decaying economy and Putin’s only global playing card being a bulging but aging nuclear stockpile. It seems precious metals traders are correctly taking all of the above into account much more so than the stock and financial markets—at least so far. Indeed, all of the above taken together, or even in parts, is enough to more than move the needle on continued safe-haven demand for gold and silver.

In overnight news:

More signs of a global crude oil glut. The Middle Eastern crude oil market is showing more signs of weakness amid growing concerns about a global glut that could drag prices still lower. The discount of the regional Dubai benchmark to Brent crude oil futures was at the widest since August on Monday, Bloomberg reported, suggesting ample supplies. The global oil market has been dominated by concerns that worldwide supplies have been running ahead of demand after OPEC+ producers and other drillers ramped up output. Against that backdrop, Brent futures — the leading oil benchmark — sank by 18% last year to cap the worst annual showing since 2020.  Meanwhile, investors betting on growth in Venezuela oil output after the U.S. last weekend ousted its dictator “will need deep pockets and patience, as aging infrastructure will require billions of dollars in spending. The regular timeframes to increase oil output are likely to be longer in Venezuela than elsewhere due to the challenges faced by the industry. To maintain production of 1 million barrels a day, Venezuela would likely need more than the industry standard of roughly $5.5 billion in annual investment,” said Bloomberg.

Asian, European stock markets on a roll. Asian stocks are having their best-ever start to a year, with some key indexes at record highs. The region’s currencies and bonds also rallying as investors seek opportunities outside the U.S. The MSCI Asia Pacific Index is up around 4% in the four trading sessions of 2026, set for its strongest beginning in records going back to 1988, with South Korea and Taiwan leading the gains. A gauge of the region’s currencies has notched its best start since 2023. “U.S. exceptionalism has peaked and is starting to unwind,” Raymond Sagayam, managing partner at Banque Pictet & Cie SA, said in an interview on Bloomberg. Emerging markets like those in Asia are set to benefit from a number of tailwinds, including attractive valuations and proximity to the AI value chain, he said. Meantime, Europe’s STOXX 50 traded little changed near record levels on Tuesday, while the broader STOXX 600 rose 0.4% to a fresh all-time high, supported by gains in basic resources amid higher metal prices. The German DAX index edged up to surpass 24,900 on Tuesday, reaching fresh record highs. The U.K.’s FTSE 100 stock index rose 0.5% on Tuesday, extending the previous session’s gains and pushing decisively above the 10,000 mark to a new all-time high.

Copper futures hit another record high. Copper futures climbed above $6 per pound overnight, hitting a new record high amid expectations of a further tightening in global supplies this year. “Traders are increasingly concerned that the Trump administration could introduce new tariffs on refined metals, diverting shipments into the U.S. and leaving major trading hubs such as London and Shanghai short of supply,” said TradingEconomics.com. Prices were also supported by a robust global demand outlook, particularly from power grid upgrades, renewable energy projects and data center expansion.

The key outside markets today see the U.S. dollar index firmer. Crude oil prices are slightly up and trading around $58.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.18%.

Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.

March silver futures bulls’ next upside price objective is closing prices above solid technical resistance at the record high of $82.67. The next downside price objective for the bears is closing prices below solid support at last week’s low of $69.225. First resistance is seen at the overnight high of $79.29 and then at $80.00. Next support is seen at the overnight low of $75.70 and then at $75.00

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com