Gold, Silver Prices See Normal, Corrective Pullbacks From Recent Gains
(Kitco News) - Gold and silver prices are modestly lower in early-afternoon U.S. trading Tuesday. The safe-haven metals are being pressured by upbeat trader and investor attitudes early this week. Still, the bulls can argue the price weakness in both metals is just a normal corrective pullback following recent gains that pushed gold to a six-month high and silver to a five-month high late last week. February gold futures were last down $2.40 an ounce at $1,287.50. March Comex silver was down $0.046 at $15.71 an ounce.
World stock markets are being boosted this week on perceived progress on U.S.-China trade talks presently taking place in Beijing and ideas of a more dovish Federal Reserve monetary policy in 2019.
The U.S. government shutdown is into its third week, but the matter is garnering less attention from the marketplace and is not a front-burner issue. President Trump will address U.S. citizens in a speech on a U.S. southern border wall Tuesday evening.
The key outside markets today see the U.S. dollar index higher on a corrective bounce after hitting a two-month low on Monday. Such was also mildly negative for the precious metals prices today. The USDX has been trending sideways to lower on the daily chart for three weeks. Meantime, Nymex crude oil prices are higher and trading around $49.50 a barrel. There are chart clues the oil market has bottomed out, but the bulls still have heavy lifting to do to suggest a price uptrend can be sustained.
Focus is turning to Wednesday’s Federal Reserve FOMC minutes report, out early in the afternoon. These reports have been markets-movers in the recent past.
Technically, February gold futures bulls have the firm overall near-term technical advantage. A seven-week-old price uptrend is in place on the daily bar chart. 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 $1,260.00. First resistance is seen at today’s high of $1,291.40 and then at this week’s high of $1,297.00. First support is seen at last week’s low of $1,278.10 and then at $1,275.00. Wyckoff's Market Rating: 6.5
March silver futures prices closed nearer the session high and saw a mild corrective pullback after hitting a five-month high last Friday. The silver bulls have the overall near-term technical advantage. A seven-week-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.25. First resistance is seen at this week’s high of $15.88 and then at last week’s high of $15.955. Next support is seen at today’s low of $15.56 and then at $15.385. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed up 165 points at 265.35 cents today. Prices closed near the session high on short covering. The copper bears still have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 275.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at this week’s high of 265.95 cents and then at 268.00 cents. First support is seen at today’s low of 262.35 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.5.