Gold Gains As Traders "Buy The Dip"

(Kitco News) - Gold prices ended the U.S. day session moderately higher Tuesday, as somemid-morning selling pressure was quickly pounced on by bulls looking to buy thebrief dip in prices.Therehas been no fresh, major fundamental news to drive the safe-haven metal higherearly this week. However, the gold charts continue to look bullish, which isinviting technically related buyers. February Comex gold was last up $5.60 anounce at $1,337.50. March Comex silver was last down $0.019 at $16.97 an ounce.

Aslumping U.S. dollar index that fell to a more-than-three-year low Tuesday alsoworked in favor of the precious metals market bulls. The greenback looks setfor more depreciation, which should continue to support the gold and silvermarkets.

TheU.S. government reopened Tuesday after a three-day shutdown. U.S. lawmakersagreed on a temporary budget plan late Monday. That situation did not have amajor impact on the world marketplace.

U.S.stock indexes set new record highs again Tuesday. The ability of gold prices tohold their own and even sustain an uptrend amid a major bull market run in thecompeting asset class of equities is an impressive element for the yellowmetal.

Focusof the marketplace this week is on Davos, Switzerland and its World EconomicForum that began Tuesday. World government officials, corporate heads and othercelebrities are at the yearly event to discuss economics and ways to make theworld a better place. The highlight of the event will be a speech by U.S.President Trump.

Theother key outside market on Tuesday saw Nymex crude oil prices higher and notfar below last week's more-than-three-year high. Rallying oil prices are also abullish factor for the metals markets, and for the raw commodity sector, ingeneral.

Technically,February gold futures prices closed nearer the session high today. The goldbulls have the overall near-term technical advantage, amid a six-week-olduptrend in place on the daily bar chart. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat the September high of $1,365.80. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,300.00. First resistance is seen at today's high of $1,338.90 and then atlast week's high of $1,345.00. First support is seen at this week's low of$1,328.00 and then at last week's low of $1,324.30. Wyckoff's Market Rating:6.5

Marchsilver futures closed prices closed near mid-range and hit a three-week lowtoday. The bulls have lost their overall near-term technical advantage amidrecent choppy and sideways trading. Silver bulls' next upside price breakoutobjective is closing prices above solid technical resistance at the Januaryhigh of $17.45 an ounce. The next downside price breakout objective for thebears is closing prices below solid support at the October low of $16.435.First resistance is seen at $17.14 and then at $17.32. Next support is seen attoday's low of $16.735 and then at $16.60. Wyckoff's Market Rating: 5.0.

March N.Y. copper closed down 835 points at 311.50 cents today. Prices closed nearthe session low and hit a five-week low today. The copper bulls still have theoverall near-term technical advantage, but faded badly today, to suggest amarket top is in place. Copper bulls' next upside price objective is pushingand closing prices above solid technical resistance at 325.00 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at 300.00 cents. First resistance is seen at 315.00 cents and then at318.00 cents. First support is seen at today's low of 310.80 cents and then at307.50 cents. Wyckoff's Market Rating: 6.0.

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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