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Gold, Silver Prices Steady-Weak; Stock Mkt. Sell-Off Limits Downside

Kitco News

(Kitco News) - Gold prices are trading near steady, while silver is slightly lower in early-afternoon U.S. trading Tuesday. Both metals dropped to three-week lows overnight as the bulls are fading, technically. However, there is some keener risk aversion in the marketplace today, as seen in a sell-off in U.S. and other world stock markets. That limited selling interest in the safe-haven gold and silver markets. February gold futures were last up $0.20 an ounce at $1,282.90. March Comex silver was down $0.054 at $15.435 an ounce.

There are renewed worries about slowing global economic growth, as the International Monetary Fund released a report Monday that projected collective world economic growth at 3.5% in 2019, which is down from their last forecast in October for 3.7% growth. The IMF also warned about higher risks for sharper declines in world economic growth.

Meantime, China on Monday reported its economic growth rate in 2018 at 6.6%, which is the lowest level in 29 years.

Germany, the economic driver of the European Union, reported more dour economic data today, with its ZEW economic expectations index weakening in January, along with its current conditions index.

The U.S. government remains in partial shut-down mode with no agreement between the Democrats and President Trump to reopen it imminent. This is starting to drag on the U.S. economy, including the lack of fresh economic news to help drive many markets.

The important outside markets today see the U.S. dollar index trading slightly lower. Meantime, Nymex crude oil prices are solidly lower and trading around $53.50 a barrel. 

The World Economic Forum is being held this week in Davos, Switzerland. Movers and shakers from around the world are there, but the U.S. has backed its government officials out due to the government shutdown.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold bulls still have the overall near-term technical advantage, but are fading now. A two-month-old price uptrend is still in place on the daily bar chart, but just barely. 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 $1,284.30 and then at last Friday’s high of $1,292.20. First support is seen at today’s low of $1,276.00 and then at $1,270.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices closed nearer the session high and hit a three-week low early on today. The silver bulls still have the slight overall near-term technical advantage, but are fading. A two-month-old price uptrend on the daily bar chart has been at least temporarily negated. 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 today’s high of $15.385 and then at $15.50. Next support is seen at today’s low of $15.195 and then at $15.00. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed down 645 points at 265.45 cents today. Prices closed near the session low. The copper bears have the firm 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 270.00 cents and then at last week’s high of 272.70 cents. First support is seen at 2.6165 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.5.

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.