(Kitco News) - Gold and silver prices are sharply lower near midday Wednesday, pressured by a resurgence in the U.S. dollar index this week and by profit taking from shorter-term futures traders. February gold was last down $31.30 at $2,042.30. March silver was last down $0.753 at $23.20.
U.S. stock index futures are solidly lower today. There is some keener risk aversion in the marketplace at mid-week as Israel is on higher alert for a military escalation with Hezbollah after one of the top leaders of Hamas was killed in a drone strike in Beirut that is widely blamed on Israel. The killing of the Hamas leader has heightened the risk of a broader Middle East conflict. Yet, gold and silver on this day got no upside benefit from safe-haven demand.
The U.S. data point of the day Wednesday is the afternoon release of the minutes from the December FOMC meeting of the Federal Reserve.
Traders are starting to look ahead to Friday’s U.S. employment situation report for December. The key non-farm jobs number in the report is expected to come in up 170,000 and compares to a rise of 199,000 seen in the November report.
The key outside markets today see the U.S. dollar index higher, on follow-through strength from Tuesday’s solid gains. Nymex crude oil prices are solidly higher and trading around $72.50 a barrel. Prices are still in a downtrend on the daily bar chart. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 3.961%.
Technically, February gold futures prices hit a two-week low today. The bulls have the firm overall near-term technical advantage but are fading this week. Prices are still in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,050.00 and then at $2,060.00. First support is seen at $2,030.00 and then at $2,015.00. Wyckoff's Market Rating: 7.0.
March silver futures prices hit a three-week low today. The silver bears have gained the overall near-term technical advantage. A three-month-old uptrend on the daily bar chart has been negated. 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 the November low of $22.26. First resistance is seen at $23.50 and then at $24.00. Next support is seen at $23.00 and then at the December low of $22.785. Wyckoff's Market Rating: 4.0.
March N.Y. copper closed down 185 points at 386.20 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Prices are in a choppy, 2.5-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 July high of 404.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 372.90 cents. First resistance is seen at this week’s high of 391.20 cents and then at the December high of 397.40 cents. First support is seen at today’s low of 383.10 cents and then at 380.00 cents. Wyckoff's Market Rating: 6.0.
Try out my “Markets Front Burner” email report. My next one is due out today and is going to be entitled, “When China sneezes...” Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it’s free! Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html
