Modest price corrections in gold, silver
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(Kitco News) - Gold and silver prices are a bit weaker in early U.S. trading Tuesday, after gold scored a nine-month high overnight. Normal downside price corrections, in existing uptrends, are featured in the two metals markets. Profit taking from the shorter-term futures traders is also seen. The gold and silver bulls still have the solid technical advantage. February gold was last down $6.90 at $1,915.00 and March silver was down $0.122 at $24.25.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Corporate earnings reports are in focus this week.
In overnight/weekend news, China got more downbeat economic data, as Covid continues to punish the world’s second-largest economy. China’s economic growth slowed to 3% in 2022 from 8.1% in 2021, official data said Tuesday. Except for the pandemic year of 2020, that’s the worst annual economic growth rate for China since 1976. The dour China news has traders and investors more risk averse to start this holiday-shortened U.S. trading week.
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The key outside markets today see the U.S. dollar index modestly lower. Nymex crude oil futures prices are higher and trading around $80.30 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.549%.
U.S. economic data due for release Tuesday is light and includes the Empire State manufacturing survey.
Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a nine-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,950.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,870.00. First resistance is seen at today’s high of $1,931.80 and then at $1,950.00. First support is seen at the overnight low of $1,906.80 and then at $1,900.00. Wyckoff's Market Rating: 8.0
The silver bulls have the firm overall near-term technical advantage. A choppy, four-month-old uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today’s high of $24.67 and then at the January high of $24.775. Next support is seen at $24.00 and then at $23.50. Wyckoff's Market Rating: 7.0.