According to Jim Wyckoff and Kitco News, the price of gold hit an almost two-month high early Tuesday, January 17. Also working in favor of the precious metal bulls is a currently weaker index for the U.S. dollar. Another positive for the precious metal market is the increasing value of Comex gold and silver. On the 17th, Comex gold was up $17.40 an ounce at the price of $1,213.70, and Comex silver saw an increase of $0.265 at $17.03 per ounce.
Also on the 17th, British Prime Minister Theresa May delivered a speech concerning the U.K.’s possible secession from the European Union, a matter that is causing concern among European market members. Additionally, the inauguration of U.S. President Donald Trump on January 20th has stirred further uncertainty and worry among market participants regarding the value of safe-haven gold, as Trump’s plans for economic growth and development have remained vague.
Rated at 5.0 by Wyckoff, the February gold market’s bulls and bears have evened out with bulls likely to gain ground due to a four-week uptrend on the daily bar chart. Bulls look to close the next near-term at $1,250 while bears aim to close below support at $1,175 with first resistance and first support being seen at $1,218.90 and $1,200 consecutively.
For March silver, bears are at an advantage with bulls advancing with momentum from a four-week high price. Silver bulls look to close futures prices at $17.30 per ounce with bears hoping to close prices at December’s low of $16.25. With this in mind, Wyckoff rated the silver market at 4.0.
Wyckoff reported that in recent “outside market” news, following statements by Saudi Arabia’s oil minister who projected that the OPEC oil-production cuts will help to balance out oil’s supply and demand issues worldwide by the middle of 2017, Nymex crude oil trading prices increased. Wyckoff also discussed the German government’s auction of a two-year note at a record low yield of -.75%, another reminder of the tentative state of the current European marketplace.