Gold steady; U.S. data pace picks up starting Tuesday
(Kitco News) - Gold prices are trading near steady in midday U.S. trading Monday. Gold and silver traders are awaiting a fresh fundamental spark to help drive prices. U.S. economic data was scant on Monday but the report tempo rapidly picks up speed beginning Tuesday. February gold futures were last down $0.10 an ounce at 1,465.00. March Comex silver prices were last up $0.064 at $16.66 an ounce.
The world marketplace is seeing just a bit of risk aversion to start the trading week, following weaker economic data coming out of China, the world’s second-largest economy. China’s exports fell 1.1% in November, year-on-year, including shipments to the U.S. declining 23% in the period. China’s exports were seen up 1.0% in November. Imports were up 0.3% in the same period, and were expected to be unchanged.
The U.S. economic highlight of the week is the Federal Reserve’s Open Market Committee meeting (FOMC) that begins Tuesday morning and ends Wednesday afternoon with a statement. The Fed is expected to make no changes in its monetary policy. The European Central Bank also meets on monetary policy Thursday.
Goldman Sachs is recommending investors buy some more gold in the coming months, due to stubbornly low global bond yields, the higher potential for stock market turbulence and the keener uncertainty of the 2020 U.S. presidential election.
The key “outside markets” today see the U.S. dollar index slightly weaker. Meantime, Nymex crude oil prices are slightly lower and trading around $59.00 a barrel.
Technically, February gold futures bulls and bears are on a level overall near-term technical playing field amid recent choppy and sideways trading. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,489.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the November low of $1,453.10. First resistance is seen at $1,475.00 and then at $1,480.00. First support is seen at $1,456.60 and then at the November low of $1,453.10. Wyckoff's Market Rating: 5.0
March silver futures prices were nearer the session high on short covering after hitting a four-month low early on today. The silver bears have regained the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.400 and then at last week’s high of $17.415. Next support is seen at $16.50 and then at $16.25. Wyckoff's Market Rating: 4.0.
March N.Y. copper closed up 315 points at 275.60 cents today. Prices closed nearer the session high and hit a 4.5-month high today. The copper bulls have gained the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 280.90 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at today’s high of 276.20 cents and then at 280.90 cents. First support is seen at today’s low of 272.00 cents and then at 270.00 cents. Wyckoff's Market Rating: 6.0.