Gold, Silver Fall To 5-Mo. Lows On Bearish Outside Mkts
(Kitco News) - Gold and silver prices ended the U.S. day session weaker and dropped to five-month lows Tuesday. Bearish “outside market” forces worked against the precious metals markets on this day, as the U.S. dollar index was higher and crude oil prices were lower. Many traders are on the sidelines ahead of the Federal Reserve’s Open Market Committee (FOMC) statement Wednesday afternoon.February Comex gold was last down $5.10 an ounce at $1,241.70. March Comex silver was last down $0.12 at $15.665 an ounce.
This is a big week for economic events, highlighted by the FOMC meeting. It’s widely expected the Fed will raise U.S. interest rates at the conclusion of its FOMC meeting Wednesday afternoon. Fed chair Janet Yellen will also hold what will likely be her final press conference after the FOMC statement.
The European Central Bank and Bank of England monetary policy meetings also take place this week. ECB President Mario Draghi is set to deliver a speech Tuesday, which will be closely monitored for any comments he makes on future ECB monetary policy.
World stock markets were mixed but mostly higher Tuesday. U.S. stock indexes were mixed in early afternoon trading. There continues to be a general “risk-on” trading attitude in the world marketplace that is boosting equity markets and limiting buying interest in the precious metals.
The NFIB U.S. small business index was released early this morning and was at a record high for small business optimism. This is yet another testament to the upbeat attitudes in the marketplace, at present.
Technically, February gold futures prices closed near mid-range today. The bears have the firm overall near-term technical advantage. The path of least resistance for prices remains sideways to lower. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,267.00. 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 today’s high of $1,247.90 and then at this week’s high of $1,253.40. First support is seen at today’s low of $1,238.30 and then at $1,230.00. Wyckoff's Market Rating: 3.0
March silver futures prices closed nearer the session low and hit a five-month low today. The silver bears have the solid overall near-term technical advantage. Prices are in a steep three-week-old downtrend on the daily bar chart. 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 this week’s high of $15.905 and then at $16.00. Next support is seen at today’s low of $15.635 and then at $15.50. Wyckoff's Market Rating: 2.5.
March N.Y. copper closed up 100 points at 302.15 cents today. Prices closed nearer the session high on more short covering. The copper bulls and bears are on a level overall near-term technical playing field. Prices are in a seven-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 285.00 cents. First resistance is seen at today’s high of 302.85 cents and then at 305.00 cents. First support is seen at 300.00 cents and then at this week’s low of 296.35 cents. Wyckoff's Market Rating: 5.5.