Gold, Silver Prices Propelled By Plunging Greenback, Rising Crude Oil

(Kitco News) - Gold and silver pricesended the U.S. day session sharply higher and near theirdaily highs Wednesday. Gold scored a 4.5-month high and silver notched anine-week high. A sharply lower U.S. dollar index that slumped to a 3.5-yearlow today, and rallying crude oil prices that hit a 2.5-year high, areproviding the precious metals bulls with rocket fuel. February Comex gold waslast up $20.20 an ounce at $1,357.10. March Comex silver was last up $0.587 at$17.495 an ounce.

Helpingsink the U.S. dollar index Wednesday were comments from U.S. Treasury SecretarySteven Mnuchin, who said in Davos, Switzerland that a weaker U.S. dollar isbeneficial for the U.S. economy.

Someupbeat economic data coming out of the European Union Wednesday helped to liftthe Euro currency to a more-than-two-year high.

Meantime,Nymex crude oil prices are were higher, above $65.00 a barrel. The rally in theoil market is also an underlying bullish element for the entire raw commoditysector.

Technically,Februarygold futures prices closed near the session high today. The gold bullshave the firm overall near-term technical advantage and gained more powertoday, amid a six-week-old uptrend in place on the daily bar chart. Gold bulls'next upside near-term price breakout objective is to produce a close abovesolid technical resistance at the September high of $1,365.80. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,330.00. First resistance is seen at today's high of$1,354.90 and then at $1,360.00. First support is seen at $1,345.00 and then attoday's low of $1,339.10. Wyckoff's Market Rating: 7.0

Marchsilver futures prices closed near the session high today. The silver bulls havequickly regained their overall near-term technical advantage. Silver bulls'next upside price breakout objective is closing prices above solid technicalresistance at $18.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at this week's low of $16.735.First resistance is seen at the October high of $17.59 and then at $17.75. Nextsupport is seen at $17.32 and then at $17.00. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed up 1,135 points at 322.45 cents today. Prices closed nearerthe session high and took back all of Tuesday's big losses, and then some. Thekey outside markets were bullish for copper today as the U.S. dollar index wassharply lower and hit a 3.5-year low, while crude oil prices were higher andhit a 2.5-year high today. The copper bulls have the overall near-termtechnical advantage. Copper bulls' next upside price objective is pushing andclosing prices above solid technical resistance at the December high of 332.20cents. The next downside price objective for the bears is closing prices belowsolid technical support at this week's low of 310.80 cents. First resistance isseen at today's high of 324.25 cents and then at 327.50 cents. First support isseen at 320.00 cents and then at 317.50 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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