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Gold, silver down as risk appetite turns up

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(Kitco News) - Gold and silver futures prices are lower in midday U.S. trading Monday. Moderate selling pressure comes from a “risk-on” trader and investor mentality in the market place, on a few fronts. Somewhat limiting selling pressure in the precious metals markets today is a continued slump in the U.S. dollar index, which hit another 2.5-year low today. February gold futures were last down $13.60 at $1,830.00 and March Comex silver was last down $0.077 at $24.02 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed higher at midday but off their daily highs. Trader and investor risk appetite is upbeat as the first U.S. Covid-19 vaccines rolled out early this week to hopefully turn the tide on the pandemic that has ravaged much of the planet over the past many months. Also, the U.S. Congress’s on-again, off-again U.S. financial aid package for Americans appears to be on again, reports said, as Democrats and Republicans are reportedly closer to agreement on a deal that is a bit smaller in scope. Also, weekend reports said the U.K. and the European Union extended a Sunday deadline to complete a deal on a smooth Brexit.

On tap this week is the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting, which could reveal insight on the plans for the U.S. central bank in the coming new year. The meeting starts on Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell.

Markets are so far paying little attention to reports over the weekend that a major computer hack of some U.S. government offices has occurred over the past months, with many believing Russia is the culprit. Also, Google had major global problems Monday with its email and other applications.

The U.S. dollar index is lower and hit a 2.5-year low today. The other important outside market sees January Nymex crude oil futures prices weaker and trading around $46.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.9%.

There was no major U.S. economic data released Monday.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls and bears are on a level overall near-term technical playing field but the bulls are fading and need to show fresh power soon to avoid serious near-term technical damage being inflicted. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the December high of $1,879.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,845.60 and then at $1,850.00. First support is seen at today’s low of $1,820.00 and then at $1,810.00. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls and bears are also on a level overall near-term technical playing field amid recent choppy trading. Silver bulls' next upside price objective is closing prices above solid technical resistance at the December high of $25.015 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at today’s high of $24.365 and then at $24.75. Next support is seen at last week’s low of $23.63 and then at $23.00. Wyckoff's Market Rating: 5.0.

March N.Y. copper closed down 15 points at 352.65 cents today. Prices closed near mid-range today on mild profit taking after hitting a 7.5-year high last Friday. The copper bulls have the strong overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at today’s high of 355.60 cents and then at 360.00 cents. First support is seen at 350.00 cents and then at 345.00 cents. Wyckoff's Market Rating: 8.5.

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.