Gold, Silver Prices Down As Risk Appetite Picks Up
(Kitco News) - Gold and silver prices are weaker in early-afternoon U.S. trading Tuesday, as higher world stock markets have traders and investors in upbeat moods early this week. A higher U.S. dollar index today also worked against the precious metals market bulls. February gold futures were last down $3.60 an ounce at $1,287.70. March Comex silver was down $0.091 at $15.595 an ounce.
U.S., European and Asian stock markets were all mostly up today. The global equities markets were boosted in part on news China’s central bank said it will act to stimulate the world’s second-largest economy via tax cuts, more credit availability to smaller companies and infrastructure spending. This news follows some very weak import and export data reported by China on Monday.
However, weak economic numbers coming from Germany, the work horse of the European Union, did dampen enthusiasm among traders and investors in Europe. Germany’s gross domestic product in 2018 was today reported up 1.5% versus up 2.2% in 2017. The 2018 GDP reading was the lowest in five years. China is Germany’s biggest trading partner.
A very tame U.S. producer price index report for December, issued just after U.S. futures trading opened, did provide a brief lift for the gold market, but the rallying U.S. stock market superseded the inflation data. The December PPI came in down 0.2% from November.
Brexit is back on the front burner of the marketplace this week. Voters in the U.K. later today are likely to reject Prime Minister Theresa May’s latest Brexit plan, which could put the entire Brexit situation into serious turmoil. Such would likely prompt Europeans to seek out safe-haven assets such as gold.
Technically, February gold futures bulls still have the overall near-term technical advantage. A two-month-old price uptrend is still in place on the daily bar chart. The recent sideways pause is not bearish. 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 this week’s high of $1,296.60 and then at the January high of $1,300.40. First support is seen at today’s low of $1,286.50 and then at last week’s low of $1,280.20. Wyckoff's Market Rating: 6.5
March silver futures prices closed nearer the session low. The silver bulls have the overall near-term technical advantage. A two-month-old price uptrend is in place on the daily bar chart. A bullish pennant pattern has also formed on the daily 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 last week’s high of $15.88 and then at the January high of $15.955. Next support is seen at last week’s low of $15.56 and then at $15.385. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed up 15 points at 263.65 cents today. Prices closed nearer the session low. The copper bears 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 today’s high of 266.40 cents and then at last week’s high of 268.65 cents. First support is seen at this week’s low of 261.65 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.5.