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Price pressure on gold on profit taking from futures traders

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Wednesday, on some profit taking by the shorter-term futures traders following recent gains. Rising U.S. Treasury yields, weaker crude oil prices and a firmer U.S. dollar index at mid-week are daily negatives for the precious metals markets. February gold was last down $15.00 at $1,796.00 and March Comex silver was last down $0.266 at $22.855 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins, and are at or near their record highs. Lackluster, low-volume trading is featured as the year 2021 winds down. Look for more quiet trading the rest of this week. Trader and investor attitudes are still mostly upbeat heading into year-end, and that’s also bearish for the safe-haven metals.

The key “outside markets” today see Nymex crude oil prices slightly down and trading around $75.50 a barrel. The U.S. dollar index is slightly higher early today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.474%.

U.S. economic data due for release Wednesday includes advance economic indicators, pending home sales and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,840.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at $1,800.00 and then at the overnight high of $1,808.00. First support is seen at $1,785.00 and then at $1,775.00. Wyckoff's Market Rating: 6.0.

Live 24 hours silver chart [ Kitco Inc. ]

The March silver bears have the overall near-term technical advantage. Recent upside price action suggests a market bottom is in place. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $21.41. First resistance is seen at the overnight high of $23.185 and then at this week’s high of $23.48. Next support is seen at $22.655 and then at this week’s low of $22.50. Wyckoff's Market Rating: 3.5.

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.