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Gold Down, Silver Hits 8-Mo. Low, Amid Strong Greenback

(Kitco News) - Gold prices are lower and trading not far above last week’s 10-month low, while silver futures have notched a fresh eight-month low in early U.S. trading Tuesday. A surging U.S. dollar index that scored another 13-year high overnight remains a bearish anchor pulling down the precious metals markets. February Comex gold was last down $10.90 an ounce at $1,131.80. March Comex silver was last down $0.289 at $15.80 an ounce.

The world marketplace and safe-haven gold have not shown big reactions to violence in Europe Monday that included the assassination of Russia’s ambassador to Turkey and terror attacks in Berlin and Zurich that left over a dozen people dead. However, the European stock markets did see buying interest limited on the terror attacks, while the Euro currency dropped to a 13-year low overnight, due in part to the attacks.

Many world stock markets are trading near multi-year and/or record highs and it would not be surprising to see those stock indexes at least pause, if not see some profit-taking, into the end of the year. Any significant pullbacks in world stock markets would be a bullish development for the competing asset class, safe-haven gold. 

The other key “outside markets” on Tuesday sees Nymex crude oil prices are trading modestly higher after hitting a 16-month high last week. However, the Nymex oil bulls continue to struggle when prices are above the $50-a-barrel level.

U.S. economic data due for release Tuesday is again light and includes the weekly Goldman Sachs and Johnson Redbook retail sales reports.

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

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bears have the solid overall near-term technical advantage. Prices have been trending lower for over five months. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,168.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,100.00. First resistance is seen at the overnight high of $1,141.70 and then at $1,146.00. First support is seen at last week’s low of 1,124.30 and then at $1,120.00. Wyckoff’s Market Rating: 1.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing futures 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 $15.00. First resistance is at the overnight high of $16.11 and then at $16.33. Next support is seen at the overnight low of $15.74 and then at $15.50. Wyckoff's Market Rating: 1.5.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

 

 

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 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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