Gold firmer, silver soars to another all-time high

Some safe-haven demand for gold and silver is featured to start the trading week and the new month, amid bond market jitters that have originated from Japan. Chart-based buying is also featured in both metals as their near-term technical postures have become more bullish recently. February gold was last up $14.10 at $4,270.20. March silver prices were up $2.012 at $59.22 and hitting a contract/record high of $59.30 and climbing as of this writing.

Global stock markets were mostly weaker overnight. U.S. stock indexes are weaker near midday but up from session lows. There are some worries about Japan’s bond market that have traders and investors a bit jittery to start the week.

President Trump on Sunday said he has decided on his pick for the next Federal Reserve chair and expects his nominee to deliver interest-rate cuts. Trump's chief economic adviser, Kevin Hassett, is seen as the likely choice to succeed current Fed chief Jerome Powell, according to people familiar with the matter and as reported by Bloomberg. The person Trump picks will require U.S. Senate confirmation as chair and likely to a 14-year Fed governor term that begins in February if the selection is an outsider. Powell’s term ends in May. Hassett as the new Fed chair would be price-friendly for the precious metals.

The key outside markets today see the U.S. dollar index lower. Crude oil prices are firmer and trading around $59.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.1%.

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.

Technically, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $4,433.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at $4,300.00 and then at $4,350.00. First support is seen at the overnight low of $4,241.10 and then at $4,200.00. Wyckoff's Market Rating: 8.0.

March silver futures bulls have the strong overall near-term technical advantage. Their next upside price objective is closing prices above solid technical resistance at $60.00. The next downside price objective for the bears is closing prices below solid support at $52.50. First resistance is seen at $60.00 and then at $61.00. Next support is seen at the overnight low of $56.85 and then at $56.00. Wyckoff's Market Rating: 9.5.