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A.M. Kitco Metals Roundup: Gold Hovers Near Steady; U.S. GDP Data a Non-Event

Friday February 17, 2015 8:41 AM

(Kitco News) - Gold prices are not straying far from unchanged levels in early U.S. trading Friday. The key economic report out on this day is the second estimate to the fourth-quarter U.S. gross domestic product. The figure came in at up 2.2%, which is slightly better than expectations. The market place consensus was for a reading of up 2.0% versus the initial estimate of up 2.6%. The market place paid little attention to the report. April Comex gold was last down $0.50 at $1,209.90 an ounce. May Comex silver was last down $0.129 at $16.495 an ounce.

The key “outside markets” are in a bullish posture for the precious metals Friday morning, as the U.S. dollar index is lower and crude oil prices are higher. However, the overall technical posture of the dollar index remains bullish, while the overall chart posture for crude oil is still bearish.

In overnight news, Federal Reserve Bank of Atlanta president Dennis Lockhart told the Wall Street Journal that the June FOMC meeting and ones thereafter this year will find the door open to an interest rate increase from the Fed. Lockhart is a voting member of the FOMC.

Friday is the last trading day of the week and of the month, which makes it an extra important trading day, from a technical perspective. Weekly or monthly high or low closes on the last trading day of those periods are technically significant for a market.

Other U.S. economic data due for release Friday includes the ISM Chicago business survey, the University of Michigan consumer sentiment survey, and pending home sales.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Wyckoff’s Daily Risk Rating: 6.5 (Trader and investor market risk aversion is not high this week.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 10, with 1 being least risk-averse (most risk-on) and 10 being the most risk-averse (risk-off), and 5 being neutral.

The London A.M. gold fixing is $1,205.00 versus the previous P.M. fixing of $1,208.25.

Technically, April gold futures bears still have the overall near-term technical advantage as a five-week-old downtrend line is still in place on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,236.70. Bears' next near-term downside price breakout objective is closing prices below solid technical support at this week’s low of $1,190.00. First resistance is seen at the overnight high of $1,212.20 and then at this week’s high of $1,219.90. First support is seen at the overnight low of $1,204.10 and then at $1,200.00. Wyckoff’s Market Rating: 3.0

May silver futures bears still have the overall near-term technical advantage. Prices are also in a five-week-old downtrend. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 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 the overnight high of $16.675 and then at this week’s high of $16.905. Next support is at the overnight low of $16.425 and then at Wednesday’s low of $16.285. Wyckoff’s Market Rating: 3.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff

 

 

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 precious metal products, 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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