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Gold, silver prices fade; slumping crude oil bearish

Kitco News

(Kitco News) - Gold and silver prices are a bit weaker in early U.S. futures trading Thursday. The metals are pressured in part by falling crude oil prices that hit a six-week low overnight. The safe-haven metals are also seeing limited buying interest because there are presently no major geopolitical events to spook the marketplace. February gold futures were last down $1.30 an ounce at 1,555.50. March Comex silver prices were last down $0.138 at $17.69 an ounce.

Asian and European stock markets were mostly down overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The coronavirus impacting China has now killed 17 citizens there as China has locked down the city of 10 million people, Wuhan, reports said. At least one case of the virus is in the U.S. Markets are keeping a close eye on this matter. President Trump’s trade threats against the European Union in an interview in Davos on Wednesday are also unsettling European traders.

The key European event today is the regular monetary policy meeting of the European Central Bank. There was no change in ECB policy, as expected, but the press conference from ECB President Lagarde will be closely monitored. The statement leans a bit easy on monetary policy as it said the ECB’s bond-buying program will continue “as long as necessary.”

The key outside markets today see crude oil prices down and trading around $56.00 a barrel. The U.S. dollar index is near steady early today.

U.S. economic data due for release Thursday includes the weekly jobless claims report, leading economic indicators, the weekly DOE liquid energy stocks report, and the Kansas City Fed manufacturing survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage, but the January spike high is still strong chart resistance to overcome. A price uptrend is still in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the September high of $1,571.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,525.00. First resistance is seen at the overnight high of $1,563.30 and then at this week’s high of $1,568.80. First support is seen at $1,550.00 and then at $1,541.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $18.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at the overnight high of $17.91 and then at $18.00. Next support is seen at the overnight low of $17.59 and then at $17.50. Wyckoff's Market Rating: 5.0.

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.