Gold, silver prices weaker as bulls need positive inputs
(Kitco News) - Gold and silver prices are lower and hit new daily lows in early U.S. futures trading Wednesday, as the markets are succumbing a bit to the generally upbeat trader and investor attitudes in the global marketplace as the holidays approach. A rebound in the U.S. dollar index this week is also a negative for the metals markets. February gold futures were last down $3.80 an ounce at 1,476.90. March Comex silver prices were last down $0.097 at $16.975 an ounce.
Asian and European stock indexes were mixed overnight. The U.S. stock indexes are pointed toward modestly higher openings and will be at or near record highs when the New York day session begins. Traders and investors are turning their attention to the upcoming holidays, so trading interest and volumes are likely to wane the next couple weeks.
Risk appetite is receding just a bit at mid-week, following last week’s U.S.-China partial trade agreement. That deal has yet to be signed and there are many skeptics that wonder how China will be able to purchase $40 billion worth of agricultural products, which is about double the previous record-high annual China ag purchases from the U.S.
In overnight news, the Euro zone consumer price index for November was reported down 0.3% from October and up 1.0%, year-on-year, which was in line with trade expectations but still shows worrisomely low inflation in Europe.
The key “outside markets” today see the U.S. dollar index higher. Greenback bulls are still on the defensive, however, after prices hit a 4.5-month low last week. Meantime, Nymex crude oil prices are weaker and trading around $60.50 a barrel after hitting a three-month high Tuesday.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
Technically, the gold bulls and bears are on a level overall near-term technical playing field amid choppy and sideways trading recently. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,453.10. First resistance is seen at $1,485.00 and then at the December high of $1,491.60. First support is seen at $1,470.00 and then at $1,463.00. Wyckoff's Market Rating: 5.0.
March silver futures bears have the overall near-term technical advantage amid a more-than-three-month-old downtrend in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $17.415 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 last week’s high of $17.185 and then at the December high of $17.415. Next support is seen at $16.82 and then at the December low of $16.565. Wyckoff's Market Rating: 4.5.