Gold and silver bulls propel prices to 7-week highs

London (Dec 26)  Gold and silver prices are moderately higher and hit seven-week highs in early U.S. futures trading Thursday. Gold is holding above the key $1,500.00 level and silver prices have moved above $18.00. Bullish charts and ideas of better demand for precious metals in the coming new year are driving prices up, despite global equity markets that are also pushing higher. February gold futures were last up $6.10 an ounce at 1,511.00. March Comex silver prices were last up $0.182 at $18.035 an ounce.

Asian and European stock indexes were mixed to slightly up in quiet, holiday trading overnight. The U.S. stock indexes are pointed toward slightly higher openings and at or near their record highs when the New York day session begins.

There is little markets-moving news in the global marketplace on the day after the Christmas holiday. The past several weeks have seen the geopolitical front quiet, which has squelched trader and investor worries and uncertainties and has allowed world stock markets to drift higher, with some stock indexes, including those in the U.S., hitting record highs. Veteran market watchers know the quiet trading atmosphere cannot go on indefinitely and are pondering the next event to upset the calm.

A feature in the markets this week is the rallying gold and silver markets. The safe-haven metals are rallying despite little risk aversion in markets. Gold bulls are focusing on better demand for precious metals in 2020, amid outlooks for increased global economic growth in the new year.

The key “outside markets” today see the U.S. dollar index slightly lower. Meantime, Nymex crude oil prices are near steady and hit a seven-week high overnight, trading around $61.15 a barrel.

U.S. economic data due for release Thursday includes the weekly MBA mortgage applications survey and weekly jobless claims.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage as an accelerating price uptrend is in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,527.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,480.00.

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