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(Kitco News) – Gold futures prices are up slightly at the start of US trading on Monday, boosted a bit by a weaker US dollar index hovering near a 2.5-year low. Gains in the yellow metal are limited by rising US and global stock markets. Silver prices are showing strong gains to start the trading week. February gold futures were up $ 3.10 to $ 1,886.40 and March Comex silver was up $ 0.787 to $ 26.695 an ounce.
Global stock markets mostly rose overnight. US stock indices point to higher openings and new record highs for the S&P 500 and Nasdaq indices when the New York session begins. The market was backed by President Trump in a surprise move over the weekend by signing the Covid-19 Aid Bill that the US Congress approved just before Christmas. The bill provides for direct payments to Americans as well as loans to American businesses.
Traders and investors are also more optimistic as Covid vaccines have continued to be rolled out in the United States and Europe. Yet enthusiasm is tempered by the pandemic which continues to run out of control in the United States, Europe and other parts of the world. Some health experts say January will be the worst month yet, when it comes to the human toll. Restrictions on many businesses in many locations remain in place and could tighten in January.
The US dollar index is slightly lower at the start of US negotiations. The other major external market sees Nymex crude oil futures prices in February firming up and trading around $ 48.50 a barrel. The yield on benchmark 10-year US Treasury bond futures is currently around 0.956%.
US economic data due for release Monday is light and includes the Texas Manufacturing Outlook Survey.
Technically, February’s gold futures bulls have the overall short-term technical advantage amid an upward price trend still in place on the daily bar chart. However, the bulls must show new power soon to keep the bullish trend alive. The next bullish price target is to produce a February futures close above strong resistance at the November high of $ 1,973.30. The next short term bearish price drop target for the Bears is to push futures prices under strong technical support at $ 1,820.00. First resistance is seen at $ 1,900.00, then the December high of $ 1,912.00. First support is seen at the overnight low of $ 1,873.00, followed by last week’s low at 1,859.00. Wyckoff Market Rating: 6.0.
The March silver futures bulls have the overall firm short-term technical advantage amid a short-term price uptrend in place on the daily chart. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at the December high of $ 27.635 an ounce. The next lower price target for the bears is to close the price below strong support at $ 25.00. First resistance is seen at the overnight high of $ 26.98 and then at $ 27.50. The next support is seen at $ 26.00 and then at $ 25.50. Wyckoff Market Rating: 6.5.
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