(Kitco News) – Comex February gold futures prices are trading higher Wednesday morning and hit a fresh four-week high as prices pushed above near-term chart resistance to provide the bulls with fresh upside near-term technical momentum. The fact gold is holding gains Wednesday when the key “outside markets� are in a bearish posture for gold (higher U.S. dollar index and weaker crude oil prices) is also encouraging to the gold bulls. February gold last traded up $9.00 at $1,640.50 an ounce. Spot gold was last quoted up $7.70 an ounce at $1,640.50. March Comex silver last traded up $0.075 at $29.89 an ounce. There are also reports of better physical demand for gold, especially from Asian countries, as the new year gets under way. The U.S. dollar index is trading higher Wednesday morning and is back near the 16-month high that was scored Monday. The dollar index bulls still have the solid overall near-term technical advantage. However, on this day the gold market bulls are ignoring the firmer greenback and focusing on gold as a safe-haven store of value. Crude oil prices are trading lower Wednesday morning, but still trading above $100.00 a barrel. Crude oil will remain an important “outside market� factor for the precious metals. There have been no major, fresh developments coming out of the European Union debt crisis recently. However, if recent history continues to play out it won’t be too long until the EU debt crisis is back on the front burner of the market place, which could further boost gold on better safe-haven investment demand. The London A.M. gold fixing was $1,641.00 versus the previous London P.M. fixing of $1,637.00. U.S. economic data due for release Wednesday includes the MBA mortgage applications survey, the Federal Reserve’s beige book, and the weekly DOE liquid energy stocks report. Technically, February Comex gold futures prices have made a good rebound from the late-December low and hit a fresh four-week high overnight. Prices also pushed above what was solid near-term technical resistance located at the $1,643.70 level. A two-month-old downtrend line on the daily bar chart has now been negated and prices have also moved above 200-day moving average. Bulls’ next upside technical breakout objective is to push prices above psychological resistance at $1,700.00. Bears’ next near-term downside price objective is closing prices below solid technical support at $1,562.50. First resistance is seen at $1,650.00 and then at $1,670.00. First support is seen at the overnight low of $1,630.80 and then at $1,620.00. March Comex silver futures prices hit a fresh four-week high Tuesday and negated a 10-week-old downtrend on the daily bar chart. Silver bulls have also gained fresh upside near-term technical momentum and their next upside price breakout objective is closing prices above solid technical resistance at $31.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $28.12. First resistance is seen at Tuesday’s high of $30.31 and then at $30.50. Next support is seen at $29.50 and then at $29.00. Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It’s free, too. My account is @jimwyckoff.

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