• "Spreading the ideas of freedom loving people on matters regarding metals, finance, politics, government and many other topics"

Gold Back Above $1,100 On Safe-Haven Demand, Chart-Based Buying

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
33,704
Reaction score
50,290
Gold Back Above $1,100 On Safe-Haven Demand, Chart-Based Buying

Monday January 25, 2016 13:54

(Kitco News) - Gold prices ended the U.S. day session moderately higher and pushed back above $1,100.00 Monday. Some fresh safe-haven demand was featured amid the recent shaky world stock markets. The technical charts are also looking better for the yellow metal. February Comex gold was last up $9.10 at $1,105.20 an ounce. March Comex silver was last up $0.193 at $14.245 an ounce.

European stock markets saw downside pressure to start the new trading week, mainly due crude oil prices once again selling off. Asian stock markets were firmer overnight, following Wall Street’s gains on Friday. U.S. stock indexes were mixed to slightly lower as of this writing Monday afternoon.

The other key “outside market” today saw the U.S. dollar index trading modestly lower, which also worked in favor of the precious metals market bulls on this day.

The Federal Open Market Committee (FOMC) meeting begins Tuesday and ends Wednesday afternoon with a statement. While no change in U.S. interest rates is expected at this meeting, the statement issued after the meeting will be very closely scrutinized. Many market watchers agree the world economies and financial markets have become shakier since the last FOMC meeting in mid-December.

Technically, February gold futures closed prices closed near mid-range today. While the gold bears have the overall near-term technical advantage, prices are in a choppy five-week-old uptrend and the bulls have some technical momentum on their side. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,113.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,078.10. First resistance is seen at last week’s high of $1,109.90 and then at $1,113.10. First support is seen at today’s low of $1,097.60 and then at $1,092.50. Wyckoff’s Market Rating: 3.5

March silver futures prices closed nearer the session high today. The silver market bears still have the overall near-term technical advantage. However, the sideways trading action the past several weeks could be “basing” that would precede a market bottom being in place. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $14.425 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the contract low of $13.64. First resistance is seen at today’s high of $14.31 and then at the January high of $14.385. Next support is seen at $14.00 and then at $13.88. Wyckoff's Market Rating: 2.5.

March N.Y. copper closed down 80 points at 199.45 cents today. Prices closed near mid-range. The copper bears still have the solid overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 210.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 190.00 cents. First resistance is seen at last week’s high of 202.30 cents and then at 205.00 cents. First support is seen at today’s low of $1.9815 and then at 195.00 cents. Wyckoff's Market Rating: 2.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff

http://www.kitco.com/news/2016-01-2...-On-Safe-Haven-Demand-Chart-Based-Buying.html



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 precious metal products, 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.