Price pauses for gold, silver after Wednesday's solid gains
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(Kitco News) - Gold and silver prices are trading near unchanged levels on the day in early U.S. action Thursday. The precious metals are seeing a routine pause after the strong gains posted Wednesday that have put the bulls in firm near-term technical control. February gold futures were last down $0.40 at $1,843.10 and March Comex silver was last up $0.029 at $24.26 an ounce.
A report said the big jump in gold prices to a two-month high on Wednesday occurred as a big inflow of $305 million went into the SPDR gold exchange traded fund (ETF) on Wednesday. The report said that was the biggest money inflow into a gold ETF since November. This is just one more indicator of traders and investors worrying about and acting upon rising and even problematic inflation.
Global stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The Nasdaq stock index has moved into "correction" territory, which means its price is down over 20% from its peak.
In other overnight news, China cut its main interest rates slightly, which is the second move this week to lower its key interest rates. China's monetary authorities are trying to stimulate their listing economy. The China rate cuts come as other major central banks of the world are looking to tighten their monetary policies.
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In other news, the Euro zone consumer price index for December was reported up 5.0%, year-on-year, which was right in line with market expectations, but still hot.
President Joe Biden at his press conference late Wednesday afternoon candidly laid out scenarios of any Russian invasion of Ukraine. Biden's remarks suggested that he was indicating to Russian President Putin that varying degrees of a Russian invasion would be met with varying degrees of a Western-nation response.
The key outside markets today see crude oil prices slightly down and trading around $86.75 a barrel. The U.S. dollar index is a bit firmer early today. The U.S. Treasury 10-year note yield is presently fetching 1.835%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, existing home sales, and the weekly DOE liquid energy report.
Technically, the February gold futures bulls have the firm overall near-term technical advantage amid a five-week-old price uptrend in place on the daily bar chart. Bulls' next upside price objective is to produce a close in February futures above solid resistance at the November high of $1,881.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,844.40 and then at $1,850.00. First support is seen at $1,833.00 and then at $1,820.00. Wyckoff's Market Rating: 7.0
March silver futures bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the January low of $21.945. First resistance is seen at the overnight high of $24.325 and then at $24.50. Next support is seen at $24.00 and then at $23.48. Wyckoff's Market Rating: 6.5.