(Kitco News) - Gold and silver prices are sharply lower in early U.S. trading Wednesday, pressured by a resurgence in the U.S. dollar index this week and by down-trending crude oil prices. Profit taking from shorter-term futures traders is featured in both metals, following their recent gains. February gold was last down $22.10 at $2,051.30. March silver was last down $0.483 at $23.47.
Asian and European stock markets were mixed to weaker overnight. U.S. stock index futures are set to open lower when the New York day session begins. 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.
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 near steady and trading around $70.25 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 3.972%.
U.S. economic data due out Wednesday includes the weekly MBA mortgage applications survey, the weekly Johnson Redbook retail sales report, the ISM report on business manufacturing, the JOLTS report, domestic auto industry sales and the minutes from the last FOMC meeting.
Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in March futures 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 $2,060.00 and then at the overnight high of $2,074.30. First support is seen at the $2,040.00 and then at $2,030.00. Wyckoff's Market Rating: 7.5.
The silver bulls have the overall near-term technical advantage but are fading a bit. Prices are still in a choppy, three-month-old uptrend 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 the December low of $22.785. First resistance is seen at $24.00 and then at this week’s high of $24.335. Next support is seen at $23.25 and then at $23.00. 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.
