Gold, silver holding strong gains as risk appetite fades a bit
Gold and silver prices are strongly higher in midday U.S. trading Tuesday, as the bulls stepped in to aggressively buy the recent big dips in prices. Today’s gains in the two precious metals are also supported by risk appetite in the general marketplace that has down-ticked a bit in the U.S. trading session, from overnight. A weaker U.S. dollar index and firmer crude oil prices are also price-positive for gold and silver. April gold was last up $308.70 at $4,959.00. March silver prices were up $11.106 at $88.17.
Monthly U.S. jobs report, other economic data, delayed due to partial federal government shutdown. The Bureau of Labor Statistics on Monday said it will not release the January jobs report this Friday, as scheduled, due to the partial federal government shutdown. “The release will be rescheduled upon the resumption of government funding,” Emily Liddel, BLS associate commissioner for publications and special studies, said in a statement. “Due to the partial federal government shutdown, the Bureau of Labor Statistics will suspend data collection, processing, and dissemination.” Other reports planned for this week, including December’s Job Openings and Labor Turnover Survey and the Metropolitan Area Employment and Unemployment release, will also be rescheduled, Bloomberg reported. Reports today said President Trump pressured GOP lawmakers to work to end the shutdown today, and it appears Trump was successful, as report said the U.S. government will reopen today.
The key outside markets today see crude oil prices modestly up and trading around $62.75 a barrel. The U.S. dollar index is weaker and the U.S. 10-year Treasury note yield is presently fetching 4.28%.
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, April gold futures price action last week formed a big and bearish “key reversal” down on the daily bar chart, which is one chart clue that a market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $5,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $4,423.20. First resistance is seen at today’s high of $4,977.70 and then at $5,000.00. First support is seen at $4,750.00 and then at the overnight low of $4,690.20. Wyckoff's Market Rating: 6.5.
March silver futures bulls’ next upside price objective is closing prices above solid technical resistance at $100.00. The next downside price objective for the bears is closing prices below solid support at $70.00. First resistance is seen at today’s high of $89.10 and then at $90.00. Next support is seen at $84.00 and then at $80.00. Wyckoff's Market Rating: 6.0.
