Gold, silver prices a bit weaker amid low risk aversion
(Kitco News) - Gold and silver prices are modestly down in early U.S. futures trading Wednesday. So far this week the global marketplace is upbeat, as traders and investors at present are reckoning the worst of the coronavirus outbreak has passed. February gold futures were last down $1.80 an ounce at 1,569.20. March Comex silver prices were last down $0.062 at $17.53 an ounce.
Asian and European shares were mostly higher overnight. U.S. stock indexes are also pointed toward higher openings and record highs when the New York day session begins. Trader and investor risk appetite is keener around the globe at midweek. While the coronavirus outbreak continues to spread, the rate of growth of new cases is slowing. There are now over 1,000 reported dead in China and over 44,000 afflicted. Still, there are reports in Asian countries of supply chains and local commerce being significantly interrupted by the outbreak. OPEC has just lowered its global demand outlook for crude oil, based on the outbreak.
In other overnight news, Euro zone industrial output for December was down 2.1% from November and down 4.1%, year-on-year. Those numbers were worse than expected.
The key outside markets today see crude oil prices higher and trading around $50.75 a barrel. Meantime, the U.S. dollar index is slightly up in early U.S. trading and not far below this week’s multi-month high.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly DOE liquid energy stocks report, and the monthly Treasury budget statement. Federal Reserve Chairman Jerome Powell will testify to the Senate today after speaking to the House Tuesday.
Technically, the gold bulls have the overall near-term technical advantage and have stabilized the market. Bulls are working on restarting a nearly three-month-old price uptrend on the daily chart, but need to show more power. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,550.00. First resistance is seen at Tuesday’s high of $1,577.50 and then at this week’s high of $1,580.50. First support is seen at the overnight low of $1,564.40 and then at $1,560.00. Wyckoff's Market Rating: 6.5
March silver futures bears have the slight overall near-term technical advantage. A five-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 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 this week’s high of $17.825 and then at $18.00. Next support is seen at the overnight low of $17.44 and then at the January low of $17.28. Wyckoff's Market Rating: 4.5.