Gold and silver register solid price gains above $ 1900 to start 2021

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(Kitco News) – Gold and silver futures prices are trading sharply higher at the start of US action on Monday, with gold hitting a seven-week high. Metals are boosted by a very anemic US dollar in the forex market which saw the dollar index hit a 2.5 year low overnight. The demand for safe-haven securities amid a surge in Covid-19 cases in the United States, Europe and other regions of the world is also supporting precious metals. The specter of rising and possibly problematic price inflation appears to be gathering momentum and energizing many commodity markets today. February gold futures were up $ 40.90 to $ 1,935.70 and March ExCom silver was up $ 1.053 to $ 27.46 an ounce.

Global equity markets were mostly firmer overnight. US stock indices are pointing to higher openings and record highs when the New York session begins. The risk appetite of traders and investors remains optimistic on this first trading day of the new year. The market continues to watch what is hoped to be a better second half of 2021 on the horizon, both in economic and human health terms. Biden’s incoming administration is expected to roll out more economic aid to the public and businesses. Additionally, Americans began receiving their stimulus funds from the US government late last week, giving many struggling Americans a temporary lifeline.

Commodity markets are also getting a lift earlier this week in part on some notions that the U.S. Senate elections in Georgia could see Democrats win a Senate majority, which would put the Senate and Congress in control of Democrats. This would suggest higher spending which would also likely help fuel price inflation. However, many believe that the two Democratic senatorial candidates are still unlikely to win in Georgia. The vote takes place on Tuesday.

In the news overnight, the euro area purchasing managers index (PMI) in December stood at 55.2 from 53.8 in November, but was a little below expectations of the market. A reading above 50.0 suggests growth in the sector.

The US dollar index is lower and hit another 2.5 year low at the start of US negotiations. The other important external market sees Nymex crude oil futures prices in February firmer and trading around $ 49.00 per barrel. The yield on benchmark 10-year US Treasury bond futures is currently around 0.925%.

US economic data due for release on Monday includes the Manufacturing Purchasing Managers Index (PMI), construction spending and the global manufacturing PMI.

Technically, the February gold futures bulls have the overall short-term technical advantage amid an upward price trend in place on the daily bar chart. The bulls have gained strength with today’s big wins. The next bull price target is to produce a February futures close above strong resistance at the November high of $ 1,973.30. The next short-term bearish price drop target for the Bears is to push futures prices under strong technical support at $ 1,900.00. First resistance is seen at the overnight high of $ 1,941.00 and then at $ 1,950.00. First support is seen at $ 1,925.00 and then an overnight low of $ 1,906.10. Wyckoff Market Rating: 6.5.

March silver futures bulls have the overall firm short-term technical advantage amid a five week old price uptrend on the daily chart. The next higher price target for Silver Bulls is to close prices above strong technical resistance at the December high of $ 27.635 an ounce. The next lower price target for the bears is to close the price below strong support at $ 26.00. The first resistance is seen at $ 27.635 and then at $ 28.00. The next support is seen at $ 27.00 and then at the overnight low of $ 26.73. Wyckoff Market Rating: 7.0.