Gold Gains As Greenback Sees More Depreciation
(Kitco News) - Gold prices were ending the U.S. day session modestly up Tuesday. A weakening U.S. dollar index early this week is propping up the precious metals markets. There was also some mild safe-haven demand featured today, as the U.S. stock market is lower, but so far in an orderly fashion. April Comex gold futures were last up $4.70 an ounce at $1,331.00. March Comex silver was last down $0.02 at $16.55 an ounce.
World stock markets were mixed but mostly lower Tuesday. Worries about rising world inflation are keeping stock market traders and investors edgy. They also still worry about high daily volatility returning to the stock markets. My bias is that the high volatility in the stock market has not just disappeared. I also believe the long bull market in stocks has ended—based on the very serious technical damage inflicted on the U.S. stock index charts recently.
The key “outside markets” on Tuesday saw the U.S. dollar index lower as the bears have regained downside momentum early this week. Meantime, Nymex crude oil prices were near steady. The International Energy Agency on Tuesday warned the big increase in U.S. shale oil production will weigh down oil prices this year and glut the world oil market. The crude oil market appears to have “rolled over” on the daily chart, to suggest a near-term market top is in place.
The big U.S. economic report of the week will be Wednesday’s consumer price index report. CPI for January is forecast to come in at up 0.4% from December and up 1.9% year-on-year. Today, the U.K. reported annual consumer inflation in January at up 3.0%, which was hotter than expected.
Technically, April gold futures prices closed the day session nearer the session high. The gold bulls have the slight overall near-term technical advantage, but need to show more power soon to keep it. A three-week-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,333.50 and then at $1,340.00. First support is seen at today’s low of $1,323.70 and then at this week’s low of $1,316.30. Wyckoff's Market Rating: 5.5
March silver futures prices closed near mid-range today. The silver bears still have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $16.645 and then at $16.75. Next support is seen at today’s low of $16.41 and then at this week’s low of $16.28. Wyckoff's Market Rating: 3.5.
March N.Y. copper closed up 760 points at 316.25 cents today. Prices closed near the session high on short covering and bargain hunting. The copper bulls have the overall near-term technical advantage and gained more power today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 325.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at 317.50 cents and then at 320.00 cents. First support is seen at 315.00 cents and then at 312.50 cents. Wyckoff's Market Rating: 6.5.