Gold Sees Mild Corrective Pullback After Big Gains Wed.
(Kitco News) - Gold prices were ending the U.S. day session modestly lower Thursday, on a minor downside correction from the strong gains seen Wednesday. Still, the gold bulls this week have gained technical power to suggest more upside price action is likely in the near term. April Comex gold futures were last down $3.40 an ounce at $1,354.60. March Comex silver was last down $0.088 at $16.79 an ounce.
Thursday morning’s release of the January U.S. producer price index report showed a rise of 0.4% from December, with the “core” reading also up a “hot” 0.4%. The January PPI was forecast to come in at up 0.4% from December on the headline number, and up 0.2% excluding food and energy, or the core. Metals and other markets moved little on the news, after seeing volatility in the aftermath of Wednesday’s hotter-than-expected consumer price index report.
A batch of other U.S. economic data released Thursday showed a mixed bag and had very little impact on the marketplace.
Global stock markets were mostly higher Thursday. The U.S. stock market was also up in early afternoon dealings. China and South Korean markets were closed Thursday for the Lunar New Year holiday.
The key outside markets on Thursday saw the U.S. dollar index lower again. The greenback is taking a beating this week and the USDX is now back close to the multi-year low scored in January. The weak dollar limited selling pressure on the metals today. Meantime, Nymex crude oil prices are higher in early afternoon trading, and just above $61.00 a barrel.
Technically, April gold futures prices closed the day session near mid-range and saw a corrective pullback from Wednesday’s big gains. The gold bulls have the firm overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,370.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,320.00. First resistance is seen at today’s high of $1,359.80 and then at $1,370.50. First support is seen at $1,350.00 and then at $1,340.00. Wyckoff's Market Rating: 7.0
March silver futures prices closed near mid-range today. The silver bears have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing 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 $16.00. First resistance is seen at today’s high of $16.95 and then at $17.00. Next support is seen at today’s low of $16.605 and then at $16.50. Wyckoff's Market Rating: 4.5.
March N.Y. copper closed up 80 points at 324.35 cents today. Prices closed near the session high. The copper bulls have the overall near-term technical advantage and have gained power this week. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 323.65 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 302.60 cents. First resistance is seen at 325.75 cents and then at 327.90 cents. First support is seen at today’s low of 321.25 cents and then at 318.00 cents. Wyckoff's Market Rating: 7.0.