Gold, Silver See Normal Corrective Pullbacks After Solid Gains
(Kitco News) - Gold and silver prices were ending the U.S. day session modestly lower Tuesday, on downside corrections and chart consolidation after their recent rallies. The U.S. dollar index had also recovered some of its earlier losses in midday trading, which was a mildly bearish element for the precious metals markets. February Comex gold was last down $2.40 an ounce at $1,263.00. March Comex silver was last down $0.09 at $16.115 an ounce.
U.S. economic data released Tuesday saw new residential construction numbers for November come in very upbeat, with housing starts up 3.3% from October. That helped to pressure safe-haven assets such as gold, silver and U.S. Treasuries.
U.S. stock indexes were under mild selling pressure at midday on profit taking from Monday’s record highs. There is growing optimism in the world marketplace that the U.S. Congress will pass tax-reform legislation, as soon as this week, which would likely to spur better U.S. economic growth. The “risk-on” trading/investing attitudes in the world marketplace at present are still limiting the upside for the safe-haven gold and silver markets.
The other key outside market on Tuesday morning saw Nymex crude oil prices firmer. The oil price uptrend has stalled out as prices tried to reach $60.00 a barrel.
Look for trading volumes to begin to dwindle as the trading week progresses ahead of the Christmas holiday weekend.
Technically, February gold futures prices were near the session low in late trading. The bears have the overall near-term technical advantage, but recent gains suggest a near-term market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the December low of $1,238.30. First resistance is seen at today’s high of $1,268.60 and then at $1,275.00. First support is seen at this week’s low of $1,255.30 and then at $1,250.00. Wyckoff's Market Rating: 3.5
March silver futures prices were nearer the session low in late trading. The bears have the overall near-term technical advantage. However, the recent gains suggest a near-term market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.635. First resistance is seen at today’s high of $16.26 and then at $16.50. Next support is seen at $16.00 and then at $15.855. Wyckoff's Market Rating: 3.0.
March N.Y. copper closed up 60 points at 315.20 cents today. Prices closed nearer the session high and hit a nearly three-week high today. The copper bulls have the overall near-term technical advantage and have regained upside momentum. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 320.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at 317.00 cents and then at 320.00 cents. First support is seen at this week’s low of 311.10 cents and then at 310.00 cents. Wyckoff's Market Rating: 6.5.