Gold At 6-Week High As Trump Press Conference On Deck

(Kitco News) – Gold prices are modestly up and poked to a six-week high in early U.S. trading Wednesday. The gold market bulls continue to gain upside momentum in the beginning of the new year. Short covering in the futures market and bargain buying in the cash market have been featured the past three weeks. Renewed demand for physical gold coming from Asia is also helping to boost the yellow metal. February Comex gold was last up $2.70 an ounce at $1,188.20. March Comex silver was last down $0.063 at $16.785 an ounce.

The world marketplace is anxiously awaiting President-Elect Donald Trump’s first press conference since his election. The press conference is scheduled to begin Wednesday morning at 10:00 A.M. eastern time. Already, Trump’s Twitter tweets have unsettled stocks and stock sectors. The marketplace perceives that Trump wants better relations with Russia, but may take a hard line on relations with China. What’s likely to take up much of his presser is the latest reports on Russia’s attempt to influence the U.S. presidential election.

Trump’s “no-holds-barred” approach to the media and answering questions could produce some surprising and possibly markets-moving remarks today.

The key “outside markets” on Wednesday morning see the U.S. dollar index trading higher. The greenback bulls have the firm overall technical advantage despite some choppy trading action the past week. The other outside market finds Nymex crude oil prices trading modestly higher after suffering sharp losses on Monday and Tuesday. Growing U.S. oil rig counts and news that Libya is ramping up its oil production are weighing on crude oil prices this week.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the IDB/TIPP economic optimism index, and the weekly DOE liquid energy stocks report.

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Technically, February gold futures bears still have the overall near-term technical advantage but the bulls have upside momentum. Prices are in a three-week-old uptrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200.00. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at $1,150.00. First resistance is seen at the overnight high of $1,191.50 and then at $1,200.00. First support is seen at Tuesday’s low of 1,180.20 and then at this week’s low of $1,172.20. Wyckoff’s Market Rating: 3.5

March silver bears have the overall near-term technical advantage, but the bulls have some momentum on their side. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at $17.30 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.675. First resistance is at $17.00 and then at $17.30. Next support is seen at Tuesday’s low of $16.575 and then at this week’s low of $16.455. Wyckoff’s Market Rating: 3.0.

By Jim Wyckoff, contributing to Kitco News;