Gold, Silver Boosted By Depreciating U.S. Dollar, Geopolitics

(Kitco News) - Gold prices ended the U.S. day session moderately up and hit a more-than-three-monthhigh Tuesday. Silver made slight gains and hit a five-week high. A slumpingU.S. dollar index that hit a better-than-three-month low today is a bullishelement for the precious metals. Gold and silver markets also saw safe-havendemand come from heightened geopolitical risks. February Comex gold was last up$6.20 an ounce at $1,315.60. March Comex silver was last up $0.07 at $17.21 anounce.

Afeature in the marketplace early this week are rising tensions in Iran asdemonstrators in that country are demanding an overthrow of the rulinggovernment. There has been a violent crackdown on the demonstrators by theIranian government. U.S. President Donald Trump has tweeted that he supportsthe demonstrators, which is a dramatic shift from the Obama administration thatwas much more low key on such matters. If this situations deteriorates further,look for more safe-haven demand for gold and silver.

NorthKorea has made an overture to South Korea for negotiations, but is alsomaintaining it plans to ramp up its production of nuclear weapons, includingleader Kim Jong Un reportedly saying he as a nuclear button on his desk. As theWinter Olympics in South Korea approach, don't be surprised if North Koreatries to play the close-by event into its favor.

Theother key outside market on Tuesday saw Nymex crude oil prices slightly weakerin afternoon trading, after hitting a 2.5-year high above $60.00 a barrelovernight. A supply disruption in the North Sea and the Iran demonstrations aresupporting the oil market. The recent rally in oil prices is bullish for theprecious metals and the entire raw commodity sector.

Technically,Februarygold futuresprices closed nearer the session high today. The bullshave the overall near-term technical advantage, amid a steep three-week-olduptrend being in place on the daily bar chart. Gold bulls' next upsidenear-term price breakout objective is to produce a close above solid technicalresistance at $1,340.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,280.00. Firstresistance is seen at today's high of $1,316.20 and then at $1,220.00. Firstsupport is seen at today's low of $1,304.60 and then at $1,300.00. Wyckoff'sMarket Rating: 6.0

Marchsilver futures prices closed nearer the session high and hit a five-week hightoday. The bulls have gained the slight overall near-term technical advantage.Prices are in a steep three-week-old uptrend on the daily bar chart. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $18.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Octoberlow of $16.435. First resistance is seen at $17.25 and then at $17.50. Nextsupport is seen at today's low of $16.985 and then at $16.75. Wyckoff's MarketRating: 5.5.

March N.Y. copper closed down 215 points at 327.90 cents today. Prices closed nearerthe session low on profit taking after hitting a contract high last week. Thecopper bulls still have the solid overall near-term technical advantage. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at 340.00 cents. The next downside price objective for thebears is closing prices below solid technical support at 310.00 cents. Firstresistance is seen at the contract high of 332.20 cents and then at 335.00cents. First support is seen at 324.85 cents and then at 322.00 cents.Wyckoff's Market Rating: 8.0.

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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