Gold And Silver Prices Propelled Higher By Plunging Greenback And Rising Crude Oil

New York (Jan 24)  Gold and silver prices ended the U.S. day session sharply higher and near their daily highs Wednesday. Gold scored a 4.5-month high and silver notched a nine-week high. A sharply lower U.S. dollar index that slumped to a 3.5-year low today, and rallying crude oil prices that hit a 2.5-year high, are providing the precious metals bulls with rocket fuel. February Comex gold was last up $20.20 an ounce at $1,357.10. March Comex silver was last up $0.587 at $17.495 an ounce.

Helping sink the U.S. dollar index Wednesday were comments from U.S. Treasury Secretary Steven Mnuchin, who said in Davos, Switzerland that a weaker U.S. dollar is beneficial for the U.S. economy.

Some upbeat economic data coming out of the European Union Wednesday helped to lift the Euro currency to a more-than-two-year high.

Meantime, Nymex crude oil prices are were higher, above $65.00 a barrel. The rally in the oil market is also an underlying bullish element for the entire raw commodity sector.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures prices closed near the session high today. The gold bulls have the firm overall near-term technical advantage and gained more power today, amid a six-week-old uptrend in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,365.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,330.00. First resistance is seen at today’s high of $1,354.90 and then at $1,360.00.

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