Monday’s early U.S. trade saw a decline in the price of both gold and silver, with gold reaching a three-week low. Precious metals traders are focused on the external markets and are pessimistic as there hasn’t been any significant, new, fundamental news to begin the trading week. The US Treasury yield curve has slightly increased, the US dollar index is stronger, and crude oil prices are firmly down. Gold for February was last seen down $23.60 at $2,026.30. Silver for March last traded at $23.09, down $0.225.
Overnight, the stock markets in Europe and Asia mixed. When the New York day session starts, U.S. stock index futures are expected to open little lower.
U.S. congressional leaders have reached a consensus on a bipartisan government budget plan for the upcoming year, according to weekend reports. It could be difficult for the House and Senate to adopt the bill in the next two weeks.
The December producer pricing index report (Feb. 6) and the December consumer price index report (Thursday) are the U.S. data points of the week. The Federal Reserve has been able to ease off of its stricter monetary policy as U.S. inflation has decreased recently. Compared to a growth of 3.1% in the November data, the CPI report shows a year-over-year increase of 3.3%.
The US dollar index is marginally higher today in the major foreign exchanges. NYMEX crude oil is currently trading at roughly $71.75 per barrel, a significant decrease. According to reports, Saudi Arabia has signaled a negative view for demand by lowering the price of its oil for a subset of its customers. In the interim, the benchmark 10-year U.S. Treasury note’s yield is currently 4.038%.
Though they are losing ground, the gold futures bulls continue to hold the short-term technical advantage overall. The three-month-old increase in prices is still present on the daily bar chart. The next upward price target for bulls is to close March futures above strong resistance at $2,100.00. The next short-term downside target for bears is to drive futures below the strong technical support level of $2,000.00. The high point of today, $2,053.30, is the first resistance, followed by $2,040.00. Support can be found first at $2,022.70, the overnight low, and then at $2,015.00. Market Rating for Wyckoff: 6.5.
Overall, the near-term technical advantage is with the silver bears. The daily bar chart shows that prices are in a turbulent four-week-old downturn. The next upward price target for silver bulls is closing March futures prices above
strong technical opposition at $25.00. The bears’ next drop target is closing prices below strong support, which is the $22.26 low from November. The $23.405 high from the previous night and the $23.715 high from Friday are the first points of resistance. The low of last week, $22.88, and the low of December, $22.785, are the next points of support. Market Rating for Wyckoff: 4.0.
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