Gold, Silver Prices Higher On U.S. Dollar Depreciation

By Kitco News / January 31, 2018 / www.kitco.com / Article Link

(Kitco News) - Gold and silver markets are moderately higher in early U.S. trading Wednesday. Aneroding U.S. dollar index continues to work in favor of the precious metalsmarket bulls. April Comex gold futures were last up $5.70 an ounce at $1,345.60.March Comex silver was last up $0.142 at $17.20 an ounce.

Thejust-released ADP National Employment Report showed a rise of 234,000 jobs inJanuary. Forecasts called for a rise of around 190,000. Gold prices backed offjust a bit on the news of a big miss to the upside on the report.

Tradersare now awaiting Friday morning’s monthly U.S. employment situation report fromthe Labor Department. This is arguably the most important U.S. data point ofthe month. The key non-farm payrolls number consensus forecast comes in at up177,000.

Worldstock markets were mixed but mostly firmer overnight. U.S. stock indexes arepointed toward higher openings when the New York day session begins, followingthe solid losses posted Tuesday.

Inovernight news, the Euro zone reported its consumer price index for January atup 1.3% versus up 1.4% in December, year-on-year. The January number was inline with market expectations.

Tuesdayevening President Trump delivered his first state-of-the-union speech. Trump’sremarks did not have a major impact on the markets.

TheFederal Open Market Committee (FOMC) meeting concludes Wednesday afternoon witha statement. No changes in U.S. monetary policy are expected. However, the FOMCstatement could contain clues about the timing of futures interest rateincreases from the Fed. This will be Fed Chair Janet Yellen’s last FOMCmeeting.

Thekey “outside markets” on Wednesday morning see the U.S. dollar index lower.Meantime, Nymex crude oil prices are also lower and trading just above $64.00 abarrel.

U.S.economic data due for release Wednesday includes the weekly MBA mortgageapplications survey, the ADP national employment report, the employment costindex, the ISM Chicago business survey, pending home sales index, and theweekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically,Aprilgold futures bulls have the overall near-term technical advantage. Pricesare still in a six-week-old uptrend on the daily bar chart, but the bulls needto show more power soon to keep it in place. Bulls’ next upside technicalobjective is pushing and closing prices above chart resistance at the Januaryhigh of $1,370.50. Bears' next near-term downside price breakout objective isclosing prices below solid technical support at $1,320.00. First support isseen at today’s low of $1,339.60 and then at this week’s low of $1,337.50. Firstresistance is seen at $1,350.00 and then at this week’s high of $1,356.30.Wyckoff’s Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

Marchsilver bulls have the overall near-term technical advantage. A choppy,six-week-old price uptrend is in place on the daily bar chart. The next upsideprice breakout objective is closing futures prices above solid technicalresistance at $18.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the January low of $16.735. Firstresistance is seen at Tuesday’s high of $17.26 and then at Monday’s high of $17.47.Next support is seen at $17.00 and then at the January low of $16.735.Wyckoff's Market Rating: 6.0.

By Jim Wyckoff

For Kitco News

Contactjwyckoff@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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