Price pressure on gold, silver from shorter-term futures traders
(Kitco News) - Gold and silver futures prices are lower in early U.S. trading Thursday. Selling pressure is seen from the emboldened shorter-term futures traders who have seen the near-term technical postures for both metals deteriorate recently. February gold futures were last down $16.10 at $1,839.00 and March Comex silver was last down $0.277 at $25.295 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are also pointed toward mixed openings when the New York day session begins. The marketplace is tentative late this week following the U.S. House of Representatives impeachment of President Trump for an unprecedented second time. Trump has less than one week left in his term as president. The marketplace remains a bit edgy ahead of the inauguration of Joe Biden as the next U.S. president next Wednesday, as a massive show of U.S. national guard and other security forces are already in Washington, D.C.
Reports say that today President-Elect Biden will announce an up to $2 trillion stimulus plan for Americans hit by the pandemic. This news did limit selling interest in the global stock markets overnight and U.S. Treasury bond yields did tick up a bit.
Traders will be watching Federal Reserve Chairman Jerome Powell’s speech at Princeton University at midday today. Several other Fed officials also are slated to speak Thursday.
The key “outside markets” today see the U.S. dollar index slightly lower. Meantime, Nymex crude oil futures prices are slightly lower and are trading around $52.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.114%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, import and export prices.
Technically, the February gold futures bulls and bears are on a level overall near-term technical playing field. However, an ominous bearish pennant or flag pattern may be forming on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the January high of $1,962.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,767.20. First resistance is seen at the overnight high of $1,851.60 and then at this week’s high of $1,864.00. First support is seen at the overnight low of $1,826.60 and then at this week’s low of $1,817.10. Wyckoff's Market Rating: 5.0
March silver futures bulls and bears are on a level overall near-term technical playing field. However, a bearish pennant or flag pattern has formed on the daily bar chart that is ominous. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $28.105 an ounce. The next downside price objective for the bears is closing prices below solid support at the November low of $21.96. First resistance is seen at the overnight high of $25.545 and then at this week’s high of $25.785. Next support is seen at $25.00 and then at this week’s low of $24.365. Wyckoff's Market Rating: 5.0.