Gold, Silver Prices See 2-Sided Trade; Bulls Still Have Chart Edge
(Kitco News) - Gold and silver prices are near steady in early-afternoon U.S. trading Wednesday and have traded both sides of unchanged today. Buying interest in both metals was limited by a higher U.S. dollar index today, as well as firmer U.S. stock indexes that hit two-month highs. However, the sellers remain timid due to the near-term bullish technical postures for both gold and silver. April gold futures were last up $0.70 an ounce at $1,314.70. March Comex silver was last down $0.035 at $15.655 an ounce.
The key economic data point of the day Wednesday was the U.S. consumer price index report for January, which came in at unchanged from December and up 1.6%, year-on-year. The consensus forecasts were up 0.1% from December and up 1.5% from January of 2018. The report again showed tame inflation.
The U.K. inflation rate in January was today reported up 1.8%, year-on-year. An important theme in the world marketplace the past few months has been tamped down inflationary pressures. At mid-year in 2018 many market watchers were worried about problematic inflation arising.
Risk appetite in the marketplace this week remains keener, what with no major geopolitical events in play at present.
Focus of the marketplace this week is on U.S.-China high-level trade talks taking place in Beijing. U.S. Treasury Secretary Mnuchin and U.S. Trade Representative Lighthizer are attending the talks, with them participating late this week. Reports today said China President Xi Jinping may meet with the U.S. delegation on Friday, as a show of good will. Many traders and investors are upbeat that a deal can be reached by the March 1 deadline. President Trump said on Wednesday he could extend that deadline a bit if the talks were progressing well.
Technically, April gold futures prices closed near mid-range in two-sided trading today. The bulls have the overall near-term technical advantage. A 2.5-month-old price uptrend is still in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,331.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,321.70 and then at last week’s high of $1,323.60. First support is seen at last week’s low of $1,306.40 and then at $1,300.00. Wyckoff's Market Rating: 6.5
March silver futures prices closed nearer the session low and hit a two-week low today. The silver bulls have the overall near-term technical advantage amid a two-month-old price uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $15.195. First resistance is seen at this week’s high of $15.83 and then at last week’s high of $15.935. Next support is seen at $15.50 and then at $15.30. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed up 20 points at 277.45 cents today. Prices closed near mid-range. The copper bulls have the slight overall near-term technical advantage. Prices have been trending higher for six weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 265.00 cents. First resistance is seen at Tuesday’s high of 279.60 cents and then this week’s high of 281.30 cents. First support is seen at this week’s low of 2.7575 cents and then at 272.50 cents. Wyckoff's Market Rating: 5.5.