Modest gains in gold prices amid weak dollar

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(Kitco News) – Gold futures prices are modestly up at the start of U.S. trading on Monday, boosted somewhat by a weaker US dollar index, which is hovering near a 2.5-year low. Yellow metal gains are being limited by the largest US and global stock markets. Silver prices are showing solid gains at the beginning of the trading week. February gold futures rose $ 3.10 to $ 1,886.40 and March Comex silver rose $ 0.777 to $ 26.695 an ounce.

Global stock markets rose mainly overnight. US stock indices point to higher openings and new records for the S&P 500 and Nasdaq indices when the New York Day session begins. The market was boosted by President Trump in a surprise action over the weekend by signing the Covid-19 aid bill that the U.S. Congress agreed to just before Christmas. The project provides for direct payments to Americans and also loans to American companies.

Traders and investors are also more optimistic as Covid’s vaccines continued to be launched in the US and Europe. Even so, the enthusiasm is tempered by the pandemic that remains out of control in the United States, Europe and other parts of the world. Some health experts say that January will be the worst month so far, in terms of the number of people. Restrictions on many companies in many locations remain in place and may be tightened in January.

The US dollar index is slightly lower at the beginning of US trading. The other major foreign market sees Nymex oil futures prices in February firmer and trading at around $ 48.50 a barrel. The yield on 10-year reference US Treasury bill futures is currently around 0.956%.

The US economic data released on Monday is clear and includes research on Texas manufacturing prospects.

Technically, February gold bulls have the overall short-term technical advantage amid an upward price trend still in effect on the daily bar chart. However, bulls need to show new power soon to keep the bullish trend alive. The Bulls’ next bullish price target is to produce a close in February futures above solid resistance at the November high of $ 1,973.30. The bears’ next short-term low price objective is to push future prices below solid technical support to $ 1,820.00. The first resistance is seen at $ 1,900.00 and then at the December high of $ 1,912.00. The first support is seen at the $ 1,873.00 night low and then last week’s low at 1,859.00. Wyckoff’s market rating: 6.0.

The bulls of the silver futures in March have a firm global short-term technical advantage amid a short-term upward price trend on the daily chart. The next bullish price target for silver bulls is to close prices above solid technical resistance at the December high of $ 27.635 an ounce. The bears’ next downside price target is closing prices below solid support at $ 25.00. The first resistance is seen at the $ 26.98 night high and then at $ 27.50. The next support is seen at $ 26.00 and then at $ 25.50. Wyckoff market rating: 6.5.