Make Kitco Your Homepage

Gold, silver down on stronger greenback, weaker crude oil

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold and silver prices are lower in midday U.S. trading Thursday, with silver notching a nine-week low. Price pressure on the metals is coming from the key outside markets being in bearish daily postures—weaker crude oil prices and a higher U.S. dollar index. This week's rise in U.S. Treasury bond yields and keener trader and investor risk appetite this week are also negatives for the safe-haven metals. February gold was last down $8.10 at $1,777.40 and March Comex silver was last down $0.417 at $22.015 an ounce.

Traders are looking ahead to the U.S. data point of the week, Friday's November consumer price index report, which is expected to come in up 0.7% from November and be up 6.7%, year-on-year.
China inflation data, released overnight, showed its producer price index up 12.9%, year-on-year, which was a decline from last month but still hotter than expected.

Global stock markets were mixed but mostly firmer in overnight trading. U.S. stock indexes are weaker at midday. It's been a very good week for the U.S. stock index bulls and Thursday sees a normal corrective pullback from the strong gains.

The key "outside markets" today see Nymex crude oil prices weaker and trading around $71.50 a barrel. Crude oil bulls have also had a very good week, however. The U.S. dollar index is higher. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.494%. U.S. bond yields have risen this week, on ideas of a tighter U.S. monetary policy and stronger U.S. economic growth in the coming months.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Bulls' next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,761.00. First resistance is seen at today's high of $1,788.40 and then at this week's high of $1,794.30. First support is seen at this week's low of $1,772.40 and then at last week's low of $1,762.20. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices hit a nine-week low today. The silver bears have the solid overall near-term technical advantage and gained more power today. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.46. First resistance is seen at today's high of $22.475 and then at this week's high of $22.635. Next support is seen at today's low of $21.84 and then at $21.46. Wyckoff's Market Rating: 2.0.

March N.Y. copper closed down 650 points at 432.90 cents today. Prices closed nearer the session low and scored a bearish "outside day" down today. The copper bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 451.15 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 420.00 cents. First resistance is seen at today's high of 439.80 cents and then at 445.00 cents. First support is seen at 430.00 cents and then at this week's low of 425.35 cents. 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.