Gold, silver prices at 6-week highs; raw commodity bulls waking up

Editor’s Note: 2020 is expected to be another year of significant uncertainty and turmoil. But the question is what asset will emerge the victor when the dust settles from the global trade war, Brexit, recession threats, negative bond yields. It’s a showdown of global proportions, so don’t miss all our exclusive coverage on how these factors could impact your 2020 investment decisions.

(Kitco News) –  Gold and silver prices are reasonably greater and at six-week highs in early U.S. futures buying and selling Tuesday. Heading into the vacations and the tip of the yr, the metals bulls are way more assured because the technical postures for gold and silver have turned constructive. Importantly, different uncooked commodity markets are perking up, together with the grains, softs markets and crude oil. Such suggests merchants and buyers predict higher international financial progress in 2020. That will imply elevated demand for uncooked commodities, together with the dear metals. February gold futures have been final up $5.60 an oz at 1,494.30. March Comex silver costs have been final up $0.156 at $17.655 an oz.

Asian and European inventory indexes have been principally barely up in additional quiet buying and selling in a single day. The U.S. inventory indexes are pointed towards barely greater openings and at or close to their document highs when the New York day session begins. Merchants and buyers are gearing up for the upcoming holidays, together with squaring their books because the finish of the yr approaches, so buying and selling curiosity and volumes are more likely to be lighter the following week or so. Markets are closed Wednesday for the Christmas vacation and plenty of, together with the U.S. inventory markets, shut early right now.

The geopolitical entrance has been quieter for a lot of weeks, together with U.S.-China commerce tensions enjoyable the previous couple weeks, and that’s making for a “risk-on”  buying and selling surroundings that’s boosting international equities. Notions of higher international financial progress within the coming new yr are additionally lifting uncooked commodity markets, with crude oil main the best way.

The key “outdoors markets” right now see the U.S. greenback index greater. Meantime, Nymex crude oil costs are barely up and buying and selling round $60.65 a barrel after hitting a multi-month excessive final week.

U.S. financial knowledge due for launch Tuesday contains the weekly Johnson Redbook and Goldman Sachs retail gross sales reviews, and the Richmond Fed enterprise survey.

Technically, the gold bulls have the general near-term technical benefit as a delicate worth uptrend is now in place on the day by day chart. Bulls’ subsequent upside worth goal is to supply an in depth in February futures above strong resistance at $1,500.00. Bears’ subsequent near-term draw back worth goal is pushing futures costs under strong technical assist on the November low of $1,453.10. First resistance is seen on the in a single day excessive of $1,496.90 after which at $1,500.00. First assist is seen on the in a single day low of $1,488.10 after which at Monday’s low of $1,481.20. Wyckoff’s Market Score: 6.0

March silver futures bulls even have the general near-term technical benefit as a three-month-old downtrend on the day by day bar chart has been negated. Silver bulls’ subsequent upside worth breakout goal is closing costs above strong technical resistance at $18.00 an oz. The following draw back worth breakout goal for the bears is closing costs under strong assist on the December low of $16.565. First resistance is seen at $17.75 after which at $18.00. Subsequent assist is seen on the in a single day low of $17.425 after which at Monday’s low of $17.23. Wyckoff’s Market Score: 6.0.