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Gold, silver hit multi-week highs on weak USDX, bullish charts

Gold and silver prices are moderately higher near midday Monday, but down from their daily highs. February gold hit a four-week high and March silver a three-month high today.

The precious metals are seeing buying support from a slumping U.S. dollar index that is trading near last week’s three-month low. The technical postures for both metals also lean bullish, which continues to invite the chart-based traders to the long sides of gold and silver. February gold was last up $5.80 at $2,029.50. March silver was last up $0.358 at $25.06.

Gold and silver futures bulls are also benefiting from notions the U.S. Federal Reserve is done raising U.S. interest rates, following some recent tamer inflation numbers. A Dow Jones Newswires headline today reads: “Gold edges higher on hopes Fed’s tightening cycle may be over.”

Asian and European markets were mostly weaker in overnight trading. U.S. stock indexes are mixed near midday. From a markets perspective, there were no major geopolitical developments over the long U.S. Thanksgiving holiday weekend.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are slightly lower and trading around $75.25 a barrel. An OPEC-plus meeting takes place this week. Reports say there have been cartel member disagreements on whether to further cut collective crude oil production. A Barron’s headline today reads: “Oil prices are falling; OPEC is reaching the limits of its power.” The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.574%.

Read more: Kitco