EDITOR'S NOTE: Catch the all new Kitco.com Market Data and Bitcoin sections!
P.M. Kitco Roundup: Gold Ends Down on Firmer U.S. Dollar, Rebound in Stock Market, Chart Consolidation
Tuesday February 4, 2014 2:27 AM
(Kitco News) - Gold prices ended the U.S. day session modestly lower Tuesday, pressured by a rebound in the U.S. stock market and a firmer U.S. dollar index. Some backing-and-filling on the charts was also seen Tuesday, after Monday’s price gains. Still, the keener investor and trader anxiety in the world market place at present remains a bullish underlying factor for the safe-haven gold market. April gold was last down $6.80 at $1,253.10 an ounce. Spot gold was last quoted down $3.80 at $1253.75. March Comex silver last traded up $0.016 at $19.425 an ounce.
Traders and investors worldwide are still jittery over the situation with some emerging market currencies being in turmoil—although those troubled smaller currencies were generally seeing good behavior Tuesday. The past couple weeks have seen investor risk appetite markedly decrease, and that’s been bullish for gold and U.S. Treasuries, but bearish for the equities markets.
The feature in overnight trading was a stock market sell-off in Asia and Europe, led by Japan’s Nikkei stock index being down over 4%. Some very weak U.S. manufacturing data Monday pushed the U.S. stock indexes sharply lower, and world stock markets followed overnight.
Market watchers are wondering more and more early this year if the very mature bull market runs in world equity markets have finally run out of gas. Indeed, the month of January was unkind to the U.S. stock index bulls. Also, the higher daily price volatility at higher price levels in the U.S. stock indexes early this year is a bearish technical warning signal of a topping process playing out.
The recent spate of disappointing U.S. economic data now puts even more importance on Friday’s monthly U.S. jobs report for January. The early forecasts are for the key non-farm payrolls figure of the employment report to come in at up around 190,000 in January.
The Chinese Lunar New Year holiday has China on holiday early this week. That is keeping Asian markets somewhat subdued.
The London P.M. gold fix is $1,250.25 versus the P.M. fixing of $1,262.00.
Technically, April gold futures prices closed nearer the session low Tuesday. A five-week-old uptrend is in place on the daily bar chart, but just barely. Bulls need to show fresh power soon to keep the fledgling uptrend alive. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,280.10. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,230.80. First resistance is seen at Tuesday’s high of $1,260.70 and then at this week’s high of $1,266.30. First support is seen at Tuesday’s low of $1,247.80 and then at this week’s low of $1,241.20. Wyckoff’s Market Rating: 3.0
March silver futures prices closed nearer the session high Tuesday on tepid short covering. 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 $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the December low of $18.72. First resistance is seen at this week’s high of $19.62 and then at $20.00. Next support is seen at Tuesday’s low of $19.26 and then at last week’s low of $18.97. Wyckoff's Market Rating: 2.0.
March N.Y. copper closed up 110 points at 319.45 cents Tuesday. Prices closed near mid-range on short covering in a bear market. Prices Monday hit a two-month low. Copper bears have the overall near-term technical advantage. Prices are in a steep four-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 327.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of 313.50 cents. First resistance is seen at Tuesday’s high of 320.65 cents and then at 322.50 cents. First support is seen at this week’s low of 317.50 cents and then at 315.80 cents. Wyckoff's Market Rating: 3.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter at @jimwyckoff
 |
Discuss on Kitco Forums
