(Kitco News) - Gold and silver prices are solidly down in midday U.S. trading Monday. A rally in the U.S. dollar index is a bearish daily “outside-market” element for the precious metals. Technical-based selling from the shorter-term futures traders is also featured today, amid a lack of fresh, bullish fundamental news recently. Look for a quieter trading day Tuesday, what with the New Year holiday coming on Wednesday when most markets worldwide are closed. February gold was last down $18.60 at $2,613.20 and March silver was down $0.558 at $29.41.
The key outside markets today see the U.S. dollar index higher. Bloomberg reports “the dollar is headed for its best year in almost a decade as U.S. economic strength reins in expectations for the Federal Reserve’s rate-cutting cycle, and Trump’s threats of harsh tariffs underpin bullish bets on the currency.” Meantime, Nymex crude oil futures prices are firmer and trading around $71.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.553%.
Technically, February gold futures bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $2,565.00. First resistance is seen at today’s high of $2,640.70 and then at last week’s high of $2,655.70. First support is seen at today’s low of $2,608.40 and then at $2,600.00. Wyckoff's Market Rating: 5.0.
March silver futures bears have the overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at the August low of $27.39. First resistance is seen at $30.00 and then at last week’s high of $30.485. Next support is seen at the December low of $29.145 and then at $29.00. Wyckoff's Market Rating: 3.0.
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