Advances in gold and silver prices ahead of Yellen’s remarks

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(Kitco News) – Gold and silver futures prices are higher at the beginning of the United States trading session and had strong rebounds after both markets hit overnight multi-week lows. The large recoveries suggest that bears are exhausted in the short term and that today’s casualties could be the bottom of the market in the short term. However, more price strength is needed this week to better suggest such. Optimistic “foreign markets” are also working on behalf of bulls on precious metals on Tuesday – a lower US dollar index and higher crude oil prices. February gold futures rose $ 7.40 to $ 1,837.20 and March Comex silver rose $ 0.399 to $ 25.265 an ounce.

The market today will pay close attention to former Federal Reserve chairman and new US Treasury secretary Janet Yellen, as she testifies before a US Senate finance committee. Yellen must talk about the Biden government’s spending plans to reinvigorate the US economy from the damage of the pandemic. Last week, Biden presented a $ 1.9 trillion government assistance and spending plan.

Global stock markets were up overnight. US stock indexes also point to higher openings when the New York day session begins. Traders and investors are more optimistic to start the US trading week after the three-day holiday. Market participants may be more cautious about the transition of US power at noon on Wednesday amid high security in Washington, DC and other state capitals around the country. In addition, the US has just passed 400,000 deaths from Covid-19 – the largest number in the world – and there are new concerns about the virus’s mutation. These concerns are currently being offset by vaccines that continue to be launched, although after a difficult start in the United States

The main “foreign markets” today see the US dollar index drop after the recent good recovery from a 2.5-year low recorded earlier this month. Meanwhile, Nymex oil futures prices are firmer and are trading around $ 52.75 a barrel. The yield on the 10-year United States Treasury reference note is 1.12%.

There is no important US economic data to be released on Tuesday.

Technically, the bulls and bears of the future gold of February are in the same level of short term technical field. The Bulls’ next bullish price target is to produce a close on the February futures above the solid resistance at $ 1,900.00. The bears’ next short-term low price objective is to push future prices below solid technical support at the November low of $ 1,767.20. The first resistance is seen at the $ 1,845.00 night high and then at last week’s $ 1,864.00 high. The first support is seen at $ 1,825.00 and then at last week’s low of $ 1,817.10. Wyckoff market rating: 5.0.

The bulls and bears in the March silver futures market are on the same level as the short-term technical field. The next bullish price target for silver bulls is to close prices above solid technical resistance at the January high of $ 28,105 an ounce. The bears’ next downside price target is closing prices below solid support at the November low of $ 21.96. The first resistance is seen at the $ 25.48 night high and then at $ 26.00. The next support is seen at $ 25.00 and then at last week’s low at $ 24.365. Wyckoff market rating: 5.0.