Gold and silver receive late purchase support in Powell’s comment on inflation

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(Kitco News) – Gold prices are trading almost stable and silver prices are higher in the US midday trading session on Thursday. Both metals reached their daily highs around noon, after Federal Reserve Chairman Jerome Powell said in a speech and question and answer session that the US economy is expected to rebound strongly in the coming months, including a possible significant increase in price inflation. A lower US dollar index at noon is also working in favor of bulls in the precious metals market. February gold futures fell $ 1.10 to $ 1,853.70 and March’s Comex silver rose $ 0.293 to $ 25.87 an ounce.

Powell’s speech at Princeton University at noon today seems to be the highlight in a market that needs new market fundamentals. Several other Fed officials are also expected to speak on Thursday.

The global stock markets were mixed overnight. US stock indexes are modestly rising at midday. The market is hesitant later this week, after President Trump’s impeachment in the House of Representatives, for the second time without precedent. Trump has less than a week in his term as president. The market remains a little tense before Joe Biden takes office as the next US president next Wednesday, with a massive show by the national guard and other US security forces already in Washington, DC

Reports say that President-elect Biden today will announce a stimulus plan of up to $ 2 trillion for Americans affected by the pandemic. That news limited interest in selling in global stock markets overnight and yields on U.S. Treasury bills rose slightly.

The main “foreign markets” today see the US dollar index lower and not much above the recent 2.5-year low. Meanwhile, Nymex crude futures prices are higher and are trading around $ 53.35 a barrel. The yield on the 10-year US Treasury reference note is 1.1%.

Technically, the bulls and bears of the future gold of February are in the same level of short-term technical field. However, a bearish streamer or flag pattern may be forming on the daily bar chart. The Bulls’ next bullish price target is to produce a close above the solid resistance at the January high of $ 1,962.50. The bears’ next short-term low price objective is to push future prices below solid technical support at $ 1,800. The first resistance is seen at this week’s high of $ 1,864.00 and then at $ 1,875.00. The first support is seen at today’s low of $ 1,826.60 and then at this week’s low of $ 1,817.10. Wyckoff market rating: 5.0

Bulls in the silver futures market in March regained the slight general short-term technical advantage. However, a bearish streak pattern has formed on the daily bar chart. The next bull bull price target is to close prices above solid technical resistance at the January high of $ 29,105 an ounce. The bears’ next downside price target is closing prices below solid support at $ 24.00. The first resistance is seen at $ 26.25 and then at $ 26,500. The next support is seen at today’s low of $ 25,095 and then at $ 25.00. Wyckoff market rating: 5.5.

March copper in NY closed up 500 points at 366.65 cents today. Prices closed close to today’s session high. Copper bulls have a solid general technical advantage in the short term. The next bullish price target for copper bulls is to push and close prices above solid technical resistance at 375.00 cents. The bears’ next downside price target is closing prices below solid technical support at 345.00 cents. The first resistance is seen at this week’s high of 369.25 cents and then at the January high of 373.40 cents. The first support is seen at today’s low of 360.15 cents and then at this week’s low of 355.25 cents. Wyckoff’s market rating: 8.0.