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Gold, Silver Prices Weaker Amid Little Risk Aversion

Kitco News

(Kitco News) - Gold and silver prices lost very modest early gains and ended the U.S. day session slightly lower Monday. Both metals are near five-month lows. Risk-on trader and investor attitudes in the world marketplace continue to squelch buying interest in the safe-haven metals. February Comex gold was last down $1.00 an ounce at $1,247.30. March Comex silver was last down $0.028 at $15.795 an ounce.

An explosion in New York City earlier this morning as an attempt at a terror attack. The individual was captured and no serious injuries occurred. The matter had no lasting, significant impact on markets.

World stock markets were mostly higher Monday. U.S. stock indexes were also higher in early afternoon trading. The rising world equity markets continue to exhibit the keener “risk-on” trading attitudes in the world marketplace.

This is a big week for economic events, as monetary policy meetings of the U.S. Federal Reserve, the European Central Bank and Bank of England take place this week. It’s widely expected the Fed will raise interest rates at the conclusion of its FOMC meeting Wednesday afternoon. Fed chair Janet Yellen will hold her final press conference after the FOMC statement.

The key “outside markets” Monday saw the U.S. dollar index slightly lower on a corrective pullback from recent good gains. Meantime, Nymex crude oil futures prices were firmer. The price uptrend in crude oil has stalled out, which suggests a near-term market top is in place.  

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures prices closed near the session low today. The bears have the firm overall near-term technical advantage. The path of least resistance for prices remains sideways to lower. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. 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 today’s high of $1,253.40 and then at $1,260.00. First support is seen at last week’s low of $1,244.40 and then at $1,240.00. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures closed prices closed nearer the session low and closed at a five-month low close 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 today’s high of $15.905 and then at $16.00. Next support is seen at last week’s low of $15.66 and then at $15.50. Wyckoff's Market Rating: 2.5.

March N.Y. copper closed up 300 points at 300.85 cents today. Prices closed nearer the session high on short covering. The copper bulls and bears are on a level overall near-term technical playing field. A bear flag has formed on the daily bar chart. Prices are also in a seven-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 285.00 cents. First resistance is seen at today’s high of 301.90 cents and then at 305.00 cents. First support is seen at today’s low of 296.35 cents and then at the December low of 294.30 cents. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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