Gold Prices See, Profit Taking, Technical Selling Pressure
(Kitco News) - Gold prices are modestly lower in early U.S. trading Monday. Some profit-taking and chart consolidation are featured, which is not unexpected after recent good gains that pushed prices to a 3.5-month high last week. February Comex gold was last down $3.50 an ounce at $1,318.80. March Comex silver was last down $0.13 at $17.155 an ounce.
World stock markets were mixed to firmer in quieter dealings overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. indexes poked to new record highs overnight, which is a negative for the competing asset class of precious metals.
There were no major news developments over the weekend to significantly impact the marketplace.
The key outside markets on Monday morning see the U.S. dollar index solidly higher on a corrective bounce from recent selling pressure. The higher USDX today is a bearish element for the precious metals markets. The greenback bears so still have the overall near-term technical advantage.
Meantime, Nymex crude oil prices are firmer and trading above $60.00 a barrel. Oil prices are near the three-year highs hit last week. Rallying oil prices are a positive development for the raw commodity sector, including the metals.
U.S. economic data due for release Monday is light and includes the employment trends index and consumer installment credit.
Technically, February gold futures bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,350.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,300.00. First support is seen at today’s low of $1,312.70 and then at $1,307.10. First resistance is seen at last week’s high of $1,327.30 and then at $1,335.00. Wyckoff’s Market Rating: 6.0
March silver bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. The next upside price breakout objective is closing futures prices above solid technical resistance at the October high of $17.59 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.435. First resistance is seen at last week’s high of $17.32 and then at $17.50. Next support is seen at $17.00 and then at $16.865. Wyckoff's Market Rating: 6.0.