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Gold, Silver Prices Weaker; Fresh Inputs Awaited

Kitco News

(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.

The important outside markets today see the U.S. dollar index trading near steady. Meantime, Nymex crude oil prices are lower and trading just above $51.00 a barrel.  

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.

Live 24 hours gold chart [Kitco Inc.]

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

Live 24 hours silver chart [ Kitco Inc. ]

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.