Gold and Silver Prices Pause, Silver Hits Four-Month High
ICARO Media Group
In early U.S. trading on Friday, gold and silver prices remained near steady, while March silver reached a four-month high. The precious metals market experienced chart consolidation as investors prepared for the weekend. Despite the short pause, gold and silver bulls maintain a strong near-term technical advantage.
As of the latest data, February gold advanced by $0.30 to $2,057.50, while March silver declined by $0.07 to $25.59. The price of silver hitting a four-month high signals positive momentum in the market.
Meanwhile, OPEC-plus, the alliance between OPEC and its allies, agreed to cut an additional one million barrels per day of crude oil production. However, the news resulted in a sell-off of Nymex crude oil prices on Thursday.
The U.S. dollar index weakened slightly, creating a more favorable environment for gold and silver prices. Nymex crude oil prices remained steady, trading around $76.00 a barrel. Additionally, the benchmark U.S. Treasury 10-year note yielded 4.338%.
From a technical standpoint, the gold futures bulls maintain a strong overall near-term advantage. The prices have been trending upward for the past two months on the daily bar chart. The bulls' next target is to close March futures above the solid resistance level of $2,100.00. On the other hand, the bears' aim is to push prices below the robust technical support of $2,000.00. The immediate resistance levels are marked at $2,069.70 and $2,072.70, while the support levels are seen at $2,050.00 and $2,030.00.
Similarly, silver bulls hold the firm overall near-term technical advantage. The prices have been trending upward for the past two months on the daily bar chart. The next objective for the silver bulls is to close March futures above the significant technical resistance level at $26.10, which was last seen in July. Conversely, the bears' target is to close prices below the solid support level of $23.50. The immediate resistance levels are identified at $25.87 and $26.00, while the support levels are at $25.245 and $25.00.
The current market rating for both gold and silver is 7.0, suggesting a favorable outlook for both metals. Investors will continue to closely monitor the market dynamics, looking for any potential breakouts or reversals in prices.
In conclusion, gold and silver prices took a brief pause in early U.S. trading, with silver reaching a four-month high. While the market consolidates, gold and silver bulls maintain a favorable technical advantage. OPEC-plus's decision to cut crude oil production led to a sell-off in Nymex crude oil prices. The U.S. dollar weakened slightly, providing support to gold and silver prices. Traders and investors will keep a close eye on the market for further developments and potential price movements.