Gold Prices Pausing Amid Keener Risk Appetite This Week
(Kitco News) - Gold prices are slightly higher in early U.S. trading Wednesday. The yellow metal has been trading sideways in quieter fashion for several sessions. This week’s uptick in trader and investor risk appetite has limited buying interest in the safe-haven gold and silver markets. February gold futures were last up $1.20 an ounce at $1,289.60. March Comex silver was down $0.06 at $15.56 an ounce.
European and Asian stock markets were mixed overnight, as traders in Europe don’t appear too concerned about the U.K. Parliament voting down on Tuesday evening Prime Minister Theresa May’s Brexit plan. The rejection was expected by the marketplace. Now, May faces a no confidence vote Wednesday, which she is expected to survive. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Focus in the U.S. will be on quarterly corporate earnings reports.
The important outside markets today see the U.S. dollar index slightly higher following strong gains on Tuesday. Meantime, Nymex crude oil prices are weaker and trading just below $52.00 a barrel. Brent crude oil futures are presently trading just above $60.00 a barrel.
U.S. economic data due for release Wednesday includes the Federal Reserve’s beige book, the weekly MBA mortgage applications survey, import and export prices, the NAHB housing market index and the weekly DOE liquid energy stocks report. Several major U.S. economic reports have been postponed because of the continuing U.S. government partial shutdown.
Technically, the gold bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid 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 this week’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 bulls have the overall near-term technical advantage. A two-month-old 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 $15.00. First resistance is seen at this week’s high of $15.735 and then at $15.83. Next support is seen at $15.50 and then at $15.385. Wyckoff's Market Rating: 6.0.