Gold Price Hits 2-Mo. High On Safe-Haven Demand, Weak US Dollar

New York (Jan 23)  Gold prices ended the U.S. day session moderately higher and hit a two-month peak Monday. The yellow metal was supported in part on safe-haven demand and a recently down-trending U.S. dollar index. February Comex gold was last up $10.60 an ounce at $1,215.60. March Comex silver was last up $0.153 at $17.185 an ounce.

The world marketplace is anticipating prompt action from the new Trump administration on this first full week of his U.S. presidency. Trump has promised fast moves on many fronts and that has traders and investors in many markets still a bit apprehensive, which is also bullish for safe-haven gold.

The U.S. dollar index traded lower to start the new trading week. There are early technical clues that the dollar index has put in a market top. Prices have been trending lower for three weeks.

The other key “outside market” on Monday saw Nymex crude oil prices trading weaker.  OPEC and Russian oil officials said Sunday they are holding to their stated plans to reduce their collective crude oil output. However, there remains stiff technical chart resistance just above present crude oil prices.

Technically, February gold futures prices closed near mid-range today. The gold bulls and bears are still on a level overall near-term technical playing field. Prices are in a five-week-old uptrend on the daily bar chart. That suggests prices can continue to trend sideways to higher in the near term. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,236.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,175.00. First resistance is seen at today’s high of $1,219.40 and then at $1,225.00.

Source: KitcoNews