Gold, Silver Prices Weaker; Fresh Inputs Awaited
(Kitco News) - Gold and silver prices are slightly lower in early U.S. trading Thursday. The metals have been trading sideways in quieter fashion for several sessions, awaiting a new fundamental spark to drive market direction. While this week’s uptick in trader and investor risk appetite has limited buying interest in safe-haven gold and silver, their bullish near-term technical chart postures have limited selling interest. February gold futures were last down $1.40 an ounce at $1,292.50. March Comex silver was down $0.083 at $15.555 an ounce.
European and Asian stock markets were mostly lower overnight. Traders and investors are now lamenting reports out this week that the U.S. and China trade talks may not be going as well as many thought just last week. Adding to the murkiness is reports that U.S. federal prosecutors will file criminal charges of theft of intellectual property against the big Chinese technology firm Huawei. The lingering government shutdown may also be negatively impacting the U.S. equities. The added uncertainty of limited, fresh U.S. economic data is an underlying negative for many markets and maybe also for some big companies.
U.K. Prime Minister Theresa May survived a no-confidence vote from Parliament late Wednesday, but the markets were little impacted on the protracted Brexit drama playing out.
In other overnight news, the Euro Zone’s consumer price index for December came out at unchanged from November and up 1.6%, year-on-year, which was in line with market expectations. This is yet another very tame inflation report coming from a major world economy. This report lends credibility to the recent shift in the thought-process of many market watchers—to more accommodative monetary policies coming from the world’s major central banks in the coming months.
U.S. economic data due for release Thursday includes the weekly jobless claims report and the Philadelphia Fed business survey. Once again, the federal government’s partial closure is cancelling many economic reports, including some scheduled for today.
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.