(Kitco News) - Gold and silver prices are not straying too far from unchanged levels in early U.S. trading Thursday, as precious metals traders are looking for direction from several U.S. economic data points released this morning. February gold was last down $0.80 at $2,015.20. March silver was last up $0.066 at $22.955.
It’s a very busy slate of U.S. economic data due out Thursday, including the weekly jobless claims report, the Chicago Fed national activity index, the advance fourth-quarter GDP estimate and its inflation readings, the advance economic indicators report, durable goods orders, the Kansas City Fed manufacturing survey and new residential sales.
Asian and European stock markets were mixed overnight, with Asian shares mostly up and European shares mostly down. U.S. stock index futures are set to open mixed when the New York day session begins. The S&P and Nasdaq indexes have hit record highs this week as risk appetite in the general marketplace has up-ticked recently.
Part of the better risk appetite is due to China easing its monetary policy this week. Wednesday’s surprise 50 basis point reserve requirement ratio cut for banks in China “has seen buyers step into an illiquid market on expectations of a revival in construction activity,” said broker SP Angel today. Metals markets in China rallied across the board overnight “as optimism in China takes over after a seasonal lull,” said the broker. Tin rallied 1%, copper hit monthly highs and iron ore pushed higher. Premier Li Qiang called for further steps to support the economy, following the recent move to buy Chinese shares.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are higher and trading around $76.00 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.157%.
Technically, the gold futures bulls have the overall near-term technical advantage but have faded a bit. Prices are still in a three-month-old uptrend on the daily bar chart, but just barely. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at $2,067.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,025.00 and then at this week’s high of $2,039.30. First support is seen at this week’s low of $2,011.70 and then at $2,000.00. Wyckoff's Market Rating: 6.0.
The silver bears have the overall near-term technical advantage. Prices hit a three-month low Monday and are in a six-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at this week’s high of $23.09 and then at $23.25. Next support is seen at Wednesday’s low of $22.465 and then at $22.00. Wyckoff's Market Rating: 3.5.
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