Wednesday January 11, 2017 13:33

(Kitco News) - Gold prices ended the U.S. day session with good gains and hit a six-week high Wednesday. The precious metal became a bit volatile during President-Elect Donald Trump’s press conference, mainly because the U.S. stock and bond markets became very jittery. Trump said drug pricing in the U.S. is “a disaster” and also made disparaging remarks about China. The U.S. dollar index also backed way off its daily high to trade sharply lower in early afternoon trading, which also supported the precious metals market bulls. February Comex gold was last up $7.60 an ounce at $1,193.10. March Comex silver was last down $0.018 at $16.83 an ounce.

It’s likely markets will have to get used to Trump’s “no-holds-barred” approach to the media and answering questions, including his use of Twitter, which can move markets.

The gold market bulls are out of the gates in fairly good fashion to start 2017. Bargain buying in the cash market and short sellers in the futures market liquidating their positions are lifting the yellow metal. There has also been better demand recently for physical gold coming out of China and India.

The key “outside markets” on Wednesday saw the U.S. dollar index trading solidly higher early on, only to drop dramatically around midday. The greenback bulls still have the firm overall technical advantage despite some choppy trading action recently. The other outside market saw Nymex crude oil prices trade sharply higher on a corrective bounce after suffering sharp losses on Monday and Tuesday. 

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Technically, February gold futures prices closed near the session high, scored a bullish “outside day” up on the daily bar chart and hit a six-week high today. The gold 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. First resistance is seen at today’s high of $1,195.50 and then at $1,200.00. First support is seen at today’s low of $1,177.00 and then at this week’s low of $1,172.20. Wyckoff's Market Rating: 4.0

March silver futures prices closed near the session high and closed at a four-week high close today. The silver market bears still have the overall near-term technical advantage. However, there are early chart clues that a market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.30 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at $17.30. Next support is seen at today’s low of $16.56 and then at this week’s low of $16.455. Wyckoff's Market Rating: 3.5.

March N.Y. copper closed up 40 points at 260.80 cents today. Prices closed near mid-range today and hit a three-week high. The copper bulls have the overall near-term technical advantage and have momentum. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 275.30 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 244.80 cents. First resistance is seen at today’s high of 263.10 cents and then at 265.00 cents. First support is seen at 258.85 cents and then at 255.00 cents. Wyckoff's Market Rating: 6.5.