Gold Sinks On Bearish Outside Markets, Improving Risk Appetite
Tuesday January 12, 2016 13:40
(Kitco News) - Gold prices ended the U.S. day session moderately lower Tuesday on more profit-taking and chart consolidation following recent gains that saw prices hit a two-month high late last week. Bearish “outside markets” also weighed on the precious metals today, as the U.S. dollar index was solidly higher and crude oil prices were lower and hit another 12-year low today. A less-anxious world markets scene on this day also helped to pressure the safe-haven gold market. February Comex gold was last down $10.60 at $1,085.60 an ounce. March Comex silver was last down $0.091 at $13.775 an ounce.
The world marketplace was less anxious Tuesday as China stock markets have stabilized and there was no major economic data from Asia or Europe Tuesday that impacted world markets. China’s Shanghai stock index was up 0.2% on the day, while European stock markets were also firmer. U.S. stock indexes were mixed in afternoon dealings and well down from their daily highs.
There are growing notions that weaker economic growth prospects for China are now “baked into the cake” for world stock and financial markets. Remember that markets tend to factor into their pricing structures expected fundamental events well before they ever fully play out.
With Nymex crude oil prices touching $30.06 a barrel today, that is a very tough, bearish nut for most raw commodity markets to crack. Until the crude oil market stabilizes and starts to turn higher most raw commodity market bulls will continue to be backed into a corner.
Technically, February gold futures prices closed nearer the session low. The gold bears have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,113.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,070.00. First resistance is seen at $1,090.00 and then at $1,100.00. First support is seen at today’s low of $1,083.10 and then at $1,080.00. Wyckoff’s Market Rating: 3.0
March silver futures prices closed nearer the session low and hit a three-week low today. The silver market bears still the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $14.425 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the contract low of $13.64. First resistance is seen at today’s high of $13.91 and then at $14.00. Next support is seen at today’s low of $13.73 and then at $13.64. Wyckoff's Market Rating: 1.5.
March N.Y. copper closed down 150 points at 195.75 cents today. Prices closed nearer the session low and hit a contract and six-year low today. The key “outside markets” were bearish for copper today as the U.S. dollar index was solidly higher and crude oil prices were lower and hit a 12-year low. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 205.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 190.00 cents. First resistance is seen at today’s high of 198.10 cents and then at 200.00 cents. First support is seen at today’s contract low of 195.25 cents and then at 192.50 cents. Wyckoff's Market Rating: 1.0.
By Jim Wyckoff, contributing to Kitco News; email@example.com
Follow me on Twitter @jimwyckoff