Gold, Silver Continue To See The Hammer Drop
(Kitco News) - Gold and silver prices ended the U.S. day session lower Thursday. Scant risk aversion in the marketplace recently has emboldened the sellers. Gold dropped to a four-month low today, while silver hit a nearly five-month low. A rebound in the U.S. dollar index this week is also working against the precious metals market bulls. February Comex gold was last down $12.40 an ounce at $1,253.70. March Comex silver was last down $0.175 at $15.78 an ounce.
World stock markets were mostly higher Thursday, including U.S. stock indexes. World stock indexes that are at or near record or multi-year highs are a testament of the keener risk appetite in the marketplace at present, which is a big negative for the safe-haven gold and silver markets.
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Traders and investors are monitoring U.S. government lawmakers’ negotiations with President Trump over a stop-gap measure to keep the federal government in operation. It’s expected the stop-gap funding bill will be implemented later this week.
The other key “outside market” Thursday saw Nymex crude oil futures prices higher. However, the price uptrend in crude oil has stalled, which begins to suggest a near-term market top is in place.
The U.S. economic report highlight of the trading week will be Friday morning’s November U.S. employment report from the Labor Department. The key non-farm payrolls number is forecast to be up 195,000. Wednesday’s U.S. ADP national employment report for November showed a rise of 190,000 jobs.
Technically, February gold futures prices closed near the session low. The bears have the firm overall near-term technical advantage. However, the market is now technically oversold and due for a corrective bounce soon. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,280.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the July low of $1,214.50. First resistance is seen at $1,260.00 and then at today’s high of $1,266.80. First support is seen at $1,250.00 and then at $1,245.00. Wyckoff's Market Rating: 3.5
March silver futures prices closed nearer the session low and hit another nearly five-month low today. The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the July low of $15.225. First resistance is seen at $16.00 and then at $16.17. Next support is seen at today’s low of $15.76 and then at $15.50. Wyckoff's Market Rating: 2.5.
March N.Y. copper closed up 60 points at 296.75 cents today. Prices closed near mid-range on tepid short covering after hitting a nine-week low on Tuesday. The copper bulls and bears are on a level overall near-term technical playing field. Prices are in a six-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 310.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 280.00 cents. First resistance is seen at 300.00 cents and then at 305.00 cents. First support is seen at this week’s low of 294.30 cents and then at the September low of 291.35 cents. Wyckoff's Market Rating: 5.0.