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(Kitco News) – Gold and silver futures prices are sharply higher in early U.S. trading on Tuesday. These days the precious metal bulls seem to be focusing on the prospects of more U.S. liquids on the market and some optimistic economic news from China that causes better gold consumption for consumers, as well as the possibility of problematic inflation along the way. Earnings in gold and silver come despite a sharper risk appetite in the market earlier this week. February gold futures lasted $ 20.30 at $ 1,852.40 and March Comex silver lasted $ 0.446 at $ 24.52 an ounce.
Global stock markets were mostly higher overnight. U.S. stock market indexes are aiming for higher openings when the New York day session begins. It is risky for traders and investors earlier this week. The first U.S. Covid-19 vaccines were launched to health professionals, to hopefully trigger the pandemic, which is the worst respiratory pandemic in more than 100 years since the Spanish flu in 1918. The U.S. Congress appears to be making progress on U.S. financial aid for Americans slightly decreased ($ 748 billion). Reports this week also say Britain and the European Union have extended the deadline to conclude a smooth Brexit deal.
In sudden news, China’s economic recovery continued in November. China’s industrial output grew 7.0% versus 6.9% growth in October and 6.8% forecast, year-on-year. China’s retail sales grew 5.0% in November versus 4.3% growth in October and more than 5.5% forecast year-on-year. China’s economic growth is happening as other major industrial economies deal with new bottlenecks due to the spreading Covid-19. In all, pandemic U.S. deaths this week exceeded 300,000, and some health experts have predicted that another 100,000 Americans will die from the virus by the end of January.
The U.S. Federal Reserve System (FOMC) Open Market Committee meeting begins Tuesday morning and ends Wednesday afternoon with a statement and press conference by Fed Chairman Jerome Powell. The market will analyze words and comments from Fed officials, for indications of a U.S. monetary policy direction in 2021. Most believe the Fed will maintain its highly accommodative monetary policy.
The U.S. dollar index is weaker early today after it hit another 2.5-year low on Monday. The other major foreign market sees January Nymex oil prices slightly higher and trading around $ 47.00 a barrel. The yield on 10-year U.S. Treasury futures bills is currently trading around 0.9%.
U.S. economic data to be released Tuesday includes Empire State’s factory index, import and export prices, industrial production and capacity utilization, and Treasury’s international capital data.
Technically, the February golden bulls and bears are on a level overall short-term technical playing field. The next high price of bulls is to produce an end in February futures over solid resistance at the December high of $ 1,879.80. Bears ’next near-term price push futures prices below solid technical support at the November low of $ 1,767.20. First resistance is seen at $ 1,858.00 and then at $ 1,879.80. First support is seen at the sudden low of $ 1,828.50 and then at this week’s low of $ 1,820.00. Wyckoff Market Rating: 5.0
March silver futures bulls and bears are on a flat overall coming technical playing field. The next high price of silver bulls closes prices above solid technical resistance at the November high of $ 26.27 an ounce. The next downside price target for the bears is to close prices below solid support at the September low of $ 21.93. First resistance is seen at $ 24.75 and then at the December high of $ 25,015. Next support is seen at $ 24.00 and then at last week’s low of $ 23.63. Wyckoff Market Rating: 5.0.
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