Profit-Taking Futures Traders Raid Gold, Silver Markets
(Kitco News) - Gold and silver prices are sharply down in early-afternoon U.S. trading Thursday, on heavy profit taking by the short-term futures traders following recent good gains. Technically, both markets are seeing downside technical corrections, which are not unexpected. Gold prices hit a 10-month high on Wednesday and silver futures closed at a seven-month high close. April gold futures were last down $17.30 an ounce at $1,330.70. March Comex silver was last down $0.352 at $15.825 an ounce.
No significant chart damage was inflicted in gold or silver markets today, but solid follow-through selling pressure on Friday would begin to produce near-term technical damage. If recent history plays out again, gold and silver bulls will step in on Friday to buy the dips.
There were new reports out today that the ongoing U.S.-China trade talks, taking place this week in Washington, D.C., are going well. That’s allowing a bit more trader and investor risk appetite to be present in the marketplace. Reuters reported late Wednesday that U.S. and China officials are outlining a deal to end the trade war. The report said agreements in principle are being drawn up in six major areas. Reports also said U.S. President Trump and Chinese President Jinping may hold a summit in March to finalize the deal.
Technically, April gold futures prices closed near the session low. The bulls still have the firm overall near-term technical advantage. There are still no early chart clues that a market top is close at hand. A three-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 $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the February low of $1,304.70. First resistance is seen at $1,340.00 and then at today’s high of $1,344.30. First support is seen at $1,325.00 and then at $1,320.00. Wyckoff's Market Rating: 7.0
March silver futures prices closed near the session low on profit taking after closing at a seven-month high close on Wednesday. The silver bulls still have the overall near-term technical advantage. Prices are in a three-month-old price uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $16.20 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the February low of $15.445. First resistance is seen at $16.00 and then at today’s high of $16.08. Next support is seen at this week’s low of $15.715 and then at $15.50. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed down 280 points at 289.20 cents today. Prices closed near the session low on profit taking after hitting a 4.5-month high on Wednesday. The copper bulls still have the overall near-term technical advantage. Prices have been trending higher for nearly two months. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at this week’s high of 292.45 cents and then at 295.00 cents. First support is seen at Wednesday’s low of 286.90 cents and then at 285.00 cents. Wyckoff's Market Rating: 6.5.