(Kitco News) - Gold prices are a bit lower in early U.S. trading Tuesday on more profit taking from the shorter-term futures traders after recent gains. Solidly lower crude oil prices are limiting buying interest in the metals markets. However, a sharply lower greenback to start the U.S. holiday-shortened trading week is limiting the downside for gold and silver. February gold was last down $7.00 at $2,741.70. March silver was up $0.109 at $31.25.
The eyes of the world marketplace are on the policy actions of U.S. President Donald Trump, who was sworn into office Monday. Bloomberg reports that “Trump’s policies caused a rollercoaster ride in markets, with traders zeroing in on a warning over currency manipulation. … As markets digest Trump’s plans, JP Morgan has set up a war room to analyze their impact.” Trump said he planned to impose tariffs of as much as 25% on Mexico and Canada products coming to the U.S. by Feb. 1. Trump also promised to speed up American energy development and revoked measures that had blocked drilling in most U.S. coastal waters.
Asian and European stock markets were mixed overnight. U.S. stock indexes are set to open firmer and at two-week highs when the New York day session begins.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are solidly down and are trading around $76.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.582%.
There is no major U.S. economic data due for release Tuesday.
Technically, February gold futures bulls have the firm overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the December high of $2,761.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,650.00. First resistance is seen at $2,750.00 and then at last week’s high of $2,759.20. First support is seen at the overnight low of $2,715.60 and then at $2,700.00. Wyckoff's Market Rating: 7.0.
March silver futures bulls have the overall near-term technical advantage. Prices are trending up on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the December high of $33.33. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $31.525 and then at $32.00. Next support is seen at the overnight low of $30.77 and then at $30.50. Wyckoff's Market Rating: 6.0.
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