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Gold, Silver Continue To See The Hammer Drop

Kitco News

(Kitco News) - Gold and silver prices ended the U.S. day session lower Thursday. Scant risk aversion in the marketplace recently has emboldened the sellers. Gold dropped to a four-month low today, while silver hit a nearly five-month low. A rebound in the U.S. dollar index this week is also working against the precious metals market bulls. February Comex gold was last down $12.40 an ounce at $1,253.70. March Comex silver was last down $0.175 at $15.78 an ounce.

World stock markets were mostly higher Thursday, including U.S. stock indexes. World stock indexes that are at or near record or multi-year highs are a testament of the keener risk appetite in the marketplace at present, which is a big negative for the safe-haven gold and silver markets.

(Please allow me to share with you some important trading/investing wisdom from my nearly 35 years in this business, including working on the trading floors in Chicago, New York and Europe. Of all my contacts with successful traders over four decades, nearly all of them used some form of charting or technical analysis to help them get an edge. If you are not doing so, may I suggest you begin to look at price charts? You do not have to be an expert on technical analysis. Even the novice trader can determine what is the most important element of technical analysis: a price trend. Every day I publish easy-to-understand technical charts, FREE on Kitco. If you are not doing so already, examine these charts every day. I guarantee you that doing so will make you a better informed (and probably more profitable) trader/investor.)

Traders and investors are monitoring U.S. government lawmakers’ negotiations with President Trump over a stop-gap measure to keep the federal government in operation. It’s expected the stop-gap funding bill will be implemented later this week.

The other key “outside market” Thursday saw Nymex crude oil futures prices higher. However, the price uptrend in crude oil has stalled, which begins to suggest a near-term market top is in place.  

The U.S. economic report highlight of the trading week will be Friday morning’s November U.S. employment report from the Labor Department. The key non-farm payrolls number is forecast to be up 195,000. Wednesday’s U.S. ADP national employment report for November showed a rise of 190,000 jobs.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures prices closed near the session low. The bears have the firm overall near-term technical advantage. However, the market is now technically oversold and due for a corrective bounce soon. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,280.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the July low of $1,214.50. First resistance is seen at $1,260.00 and then at today’s high of $1,266.80. First support is seen at $1,250.00 and then at $1,245.00. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices closed nearer the session low and hit another nearly five-month low today. The 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 $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the July low of $15.225. First resistance is seen at $16.00 and then at $16.17. Next support is seen at today’s low of $15.76 and then at $15.50. Wyckoff's Market Rating: 2.5.

March N.Y. copper closed up 60 points at 296.75 cents today. Prices closed near mid-range on tepid short covering after hitting a nine-week low on Tuesday. The copper bulls and bears are on a level overall near-term technical playing field. Prices are in a six-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 310.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 280.00 cents. First resistance is seen at 300.00 cents and then at 305.00 cents. First support is seen at this week’s low of 294.30 cents and then at the September low of 291.35 cents. Wyckoff's Market Rating: 5.0.

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.