Gold, silver see routine downside corrections Wednesday
(Kitco News) - Gold and silver prices are lower in midday U.S. trading Wednesday, on normal corrective pullbacks from recent gains that saw gold hit a six-month high Tuesday an silver an eight-month high last week. Profit taking from the shorter-term futures traders was also featured today. February gold was last down $12.60 at $1,810.60 and March silver was down $0.482 at $23.74.
Selling pressure in gold and silver intensified when the key outside markets turned bearish in morning trading. The U.S. dollar index is higher after trading down overnight. Nymex crude oil prices are lower and also lost overnight gains, presently trading around $78.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note rose today and is presently 3.866%.
The marketplace is quieter following the Christmas holiday and just ahead of the new year. Many markets, including the precious metals, are looking for fresh fundamental inputs to drive price direction.
Technically, February gold futures saw routine profit taking was featured after prices hit a six-month high Tuesday. Bulls still have the firm overall near-term technical advantage. A seven-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the $1,875.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,782.00. First resistance is seen at today’s high of $1,822.80 and then at this week’s high of $1,841.90. First support is seen at today’s low of $1,804.20 and then at $1,800.00. Wyckoff's Market Rating: 7.0
March silver futures also saw profit taking was seen after prices hit an eight-month-high last week. The silver bulls still have the firm overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.735. First resistance is seen at today’s high of $24.275 and then at the December high of $24.525. Next support is seen at $23.55 and then at $23.00. Wyckoff's Market Rating: 7.0.
March N.Y. copper closed down 25 points at 383.85 cents today. Prices closed nearer the session low on a pause after hitting a six-week high Tuesday. The copper bulls have the overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 394.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 370.00 cents. First resistance is seen at today’s high of 387.30 cents and then at 394.70 cents. First support is seen at 380.00 cents and then at 375.00 cents. Wyckoff's Market Rating: 6.0.