Price pullbacks in gold, silver, on routine profit taking

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Wednesday, on corrective pullbacks from recent gains that saw gold hit a six-month high Tuesday an eight-month high last week. February gold was last down $11.00 at $1,812.10 and March silver was down $0.117 at $24.105.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. 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.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are near steady and trading around $79.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.832%.  

U.S. economic data due for release Wednesday includes the weekly Johnson Redbook and chain store sales indexes, the Richmond Fed business survey and pending home sales.

Technically, the gold futures bulls have the firm overall near-term technical advantage. Prices are in a seven-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 $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at the overnight 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 $1,805.20 and then at $1,800.00. Wyckoff's Market Rating: 7.0.

The silver bulls have the solid overall near-term technical advantage. A choppy, four-month-old uptrend is in place on the daily bar chart. 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 the December high of $24.525 and then at $25.00. Next support is seen at today’s low of $23.81 and then at $23.55. Wyckoff's Market Rating: 7.5.