Gold Price Pushes To 6-Week High On Renewed Investor Demand
New York (Jan 10) Gold prices were slightly higher in late U.S. trading Tuesday and did hit a six-week high during the session. An overnight dip in prices turned into a buying opportunity for bargain hunters when the U.S. day session got under way. Reports Tuesday said demand for physical gold from China is increasing ahead of the Chinese lunar new year. There has also been a pick-up in demand for gold-backed exchange-traded-funds early in 2017. The technical chart postures for gold and silver are also turning more bullish early this year. February Comex gold was last up $0.70 an ounce at $1,185.60. March Comex silver was last up $0.192 at $16.875 an ounce.
The world marketplace is anxiously awaiting President-Elect Donald Trump’s first press conference since his election, on Wednesday. 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.
The key “outside markets” on Tuesday saw the U.S. dollar index trading slightly lower. The greenback bulls still have the firm overall technical advantage despite some choppy trading action the past week. The other outside market saw Nymex crude oil prices lower on follow-through pressure after suffering sharp losses on Monday. Growing U.S. oil rig counts and news that Libya is ramping up its oil production are weighing on crude oil prices early this week. Nymex Crude oil finds strong overhead resistance at or near the recent high of $55.44 in February futures.
Technically, February gold futures bears still have the overall near-term technical advantage. However, prices are in a three-week-old uptrend and there are chart clues that a market bottom is in place, and which also suggest 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 $1,200.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,160.00.
Source: KitcoNews
