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P.M. Kitco Roundup: Gold Ends Down On Profit-Taking, Firmer U.S. Dollar
Wednesday February 26, 2014 2:23 PM
(Kitco News) - Gold prices ended the U.S. day session moderately lower Wednesday, pressured on profit taking and chart consolidation following recent gains that saw prices hit a four-month high overnight. A rebound in the U.S. dollar index Wednesday was also a bearish “outside market” force working against the precious metals on this day. April gold was last down $14.20 at $1,328.50 an ounce. Spot gold was last quoted down $13.10 at $1,329.00. March Comex silver last traded down $0.658 at $21.305 an ounce.
Gold may also have seen some selling pressure on reports the European Union is moving swiftly to loan Ukraine funds to keep its financial system afloat amid the turmoil in that country. The Ukrainian civil unrest and government instability remain a significant geopolitical factor for the market place. Attention has turned from who will lead Ukraine to how will that nation survive, financially. The Ukrainian currency, the hryvnia, has plunged in value in recent weeks. The Russian ruble has also been pressured significantly by the Ukrainian crisis. The Ukrainian developments and some civil unrest and violence in Thailand recently have prompted increased safe-haven demand for gold recently.
Traders and investors are looking ahead to Thursday’s speech to the U.S. Senate Banking Committee by Fed Chair Janet Yellen. The speech was originally scheduled for a couple weeks ago, but was postponed due to inclement weather.
U.S. economic data released Wednesday included new residential sales, which showed stronger-than-expected activity in January and also somewhat limited buying interest in gold and silver.
The London P.M. gold fix is $1,331.75 versus the previous P.M. fixing of $1,339.00.
Technically, April gold futures prices closed nearer the session low Wednesday after hitting another four-month high early on. Price action also scored a bearish “outside day” down on the daily bar chart. A two-month-old uptrend is still in place on the daily bar chart. Bulls have the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,360.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at $1,332.40 and then at $1,340.00. First support is seen at Wednesday’s low of $1,322.30 and then at this week’s low of $1,318.70. Wyckoff’s Market Rating: 6.0
March silver futures prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart Wednesday. The bulls faded today and need to show fresh power soon. Silver bulls still have the slight overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $22.18 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $20.67. First resistance is seen at $21.67 and then at $22.00. Next support is seen at Wednesday’s low of $21.085 and then at $20.67. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed down 180 points at 324.05 cents Wednesday. Prices closed nearer the session low. Copper bulls and bears are on a level overall near-term technical playing field, amid recent choppy trading. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the February high of 332.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the February low of 317.50 cents. First resistance is seen at Wednesday’s high of 327.55 cents and then at this week’s high of 328.90 cents. First support is seen at Wednesday’s low of 323.55 cents and then at this week’s low of 322.60 cents. Wyckoff's Market Rating: 5.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
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