The value of gold and silver futures are higher in early U.S. trading this week, higher in part by a U.S. dollar index that has fell sharply from its late-Jan. peak. April gold futures were up to $7.30 at $1,815.10 and the March Comex silver was up $0.445 at about $22.92 per ounce.

Global stock markets have been mixed overnight. U.S. stock indexes were pointed toward slightly fewer openings when the NY day session starts. Focus has remained on the corporate earnings reports that are being released, which have been coming out generally upbeat. Friday’s surprisingly powerful U.S. jobs report also has investors and traders focusing more keenly on the Federal Reserve policy, with some market watchers now believing the Fed will hike its main Fed funds rate by about 0.5% in March. Inflation worries are also producing some buying interest within the metals markets.

The key outside markets recently sees crude oil value lower and trading at around $91.50 a barrel after the prices reached a seven-year high on Friday. Oil traders are predicting $100-per-barrel crude oil in the near future. The United States dollar index is a little weaker this week. The United States Treasury 10-year note yield is currently fetching 1.925%.

U.S. economic data that is due for release includes consumer credit and the employment trends index.

Technically, the bulls of the April gold futures have the overall short-term technical advantage. The bulls’ next upside value objective is to produce a close in Feb. futures above the solid resistance at the Jan. high of $1,856.70. Bears’ next short-term downside value objective is driving futures prices under solid technical support at the Dec. low of $1,755.40. First resistance is around the $1,820.00 and then at $1,825.00. First support is at about $1,800.00 and then at Friday’s low of about $1,792.10.

March silver futures bears do have the overall short-term technical advantage. The silver bulls’ next upside value objective is closing prices that are above the solid technical resistance levels at $24.00 per ounce. The bears next downside value objective is closing prices that are below the solid support from the Dec. low of $21.41. The first resistance is about $23.06 and then at $23.48. The next support is around the low price of $22.50 and then at $22.25.

Author: Blake Ambrose

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