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(Kitco News) – Gold futures prices are trading solidly lower in early U.S. action Monday, as U.S. stock markets are again in rally mode and trader and investor risk appetite is robust. Silver prices are trading near steady. April gold futures were last down $19.20 at $1,804.10 and March Comex silver was last up $0.007 at $27.33 an ounce.
Global stock markets were mostly firmer overnight. Mainland China markets remain closed for the Lunar New Year holiday. U.S. stock indexes are pointed toward higher openings and new record highs when the New York day session begins. U.S. markets were closed Monday for the President’s Day holiday. A U.S. big government stimulus package likely coming to Americans in the spring and falling rates of Covid-19 infections at the same time vaccinations in the U.S. are still ramping up have traders and investors still in a “risk-on” frame of mind early this week.
Reports early this week say China is considering limiting is “rare-earth” metal and mineral exports to the U.S.
In other overnight news, the Eurozone fourth-quarter GDP came in at down 0.6% from the third quarter and down 5.0%, year-on-year. Those numbers were just a bit better than expected.
Bitcoin prices hit another record high overnight and nearly hit $50,000 before backing off a bit. The keener interest in Bitcoin and the other crypto currencies is likely taking away some of the investor interest in the precious metals markets as a safe-haven store of value.
The key “outside markets” today see the U.S. dollar index trading lower and hitting a three-week low. Meantime, Nymex crude oil futures prices are firmer and trading around $59.80 a barrel. The benchmark 10-year U.S. Treasury note yield is currently fetching 1.25%.
U.S. economic data due for release Tuesday is light and includes the Empire State manufacturing survey.
Technically, the February gold futures bears have the overall near-term technical advantage amid a five-week-old price downtrend in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at last week’s high of $1,856.60. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,784.60. First resistance is seen at the overnight high of $1,827.10 and then at $1,835.00. First support is seen at $1,800.00 and then at $1,784.60. Wyckoff’s Market Rating: 4.0
March silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $30.35 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at the overnight high of $28.075 and then at $28.50. Next support is seen at $27.00 and then at last week’s low of $26.75. Wyckoff’s Market Rating: 6.5.
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