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Gold, Silver See Some Profit-Taking After Recent Good Gains

Kitco News

(Kitco News) - Gold and silver markets have seen some profit-taking pressure from the shorter-term futures traders after solid gains scored earlier this week. The metals did not show a big reaction to the just-released U.S. GDP report that was a miss to the downside. February Comex gold futures were last down $11.80 an ounce at $1,351.40. March Comex silver was last down $0.22 at $17.395 an ounce.

The U.S. economic data point highlight of the week saw this morning’s release of the fourth-quarter gross domestic product report come in at up 2.6%, year-on-year. The GDP number was forecast to come in at up 2.9%. While it was a significant miss to the downside, markets did not show a big reaction to the lower-than-expected GDP number.

The marketplace is still buzzing about comments from U.S. President Donald Trump that were aired by CNBC on Thursday afternoon. Trump said he ultimately wants a stronger U.S. dollar. His remarks pressured gold and silver markets and briefly roiled the currency markets. The U.S. dollar index popped on the news and other currencies backed way off their daily highs. However, the dollar-bullish comments from Trump quickly wore off, as traders reckoned the slide in the dollar has been going on for some time now and nothing changed from Trump’s comments.

While Trump’s dollar-bullish comments initiated the profit-taking pressure in gold and silver markets, it can also be argued those markets were already due for a downside correction after this week’s good upside price action.

Trump spoke this morning at the Davos World Economic Forum. His speech was be closely monitored by the marketplace but did not have an impact on markets.

The U.S. dollar index is lower in early U.S. trading Friday and not far above this week’s 3.5-year low. Meantime, Nymex crude oil prices are slightly lower, above $65.00 a barrel, and not far below this week’s more-than-three-year high. 

Other U.S. economic data due for release Friday includes the advance economic indicators report and durable goods orders.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls still have the firm overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at the September high of $1,365.80. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,330.00. First support is seen at today’s low of $1,343.70 and then at $1,339.00. First resistance is seen at today’s high of $1,356.80 and then at $1,365.80. Wyckoff’s Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver bulls have the overall near-term technical advantage and have restarted a price uptrend on the daily bar chart. The next upside price breakout objective is closing futures prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today’s high of $17.53 and then at this week’s high of $17.705. Next support is today’s low of $17.235 and then at $17.00. Wyckoff's Market Rating: 6.0.

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.