(Kitco News) - Gold and silver prices are solidly lower in early U.S. trading Thursday, on profit taking and downside price corrections following recent gains. A rebound in the U.S. dollar index today and an uptick in U.S. Treasury yields are also bearish outside-market forces for the precious metals on this day. February gold was last down $21.10 at $2,750.20. March silver was down $0.705 at $30.715.
Asian and European shares were mixed overnight. The German DAX hit an all-time high. U.S. stock indexes are set to open mixed when the New York day session begins, as the pause after hitting multi-week highs on Wednesday.
Overnight Chinese authorities encouraged large state-owned insurers and mutual funds to buy domestic equities to shore up its listing stock market.
The marketplace will closely watch a video speech by President Trump to the Davos Economic Forum today. Interestingly, in a live interview on CNBC in Davos, Black Rock CEO Larry Fink said while at this year’s confab, he has never seen Europeans so pessimistic on their economic/business situations.
Friday comes the interest rate decision from the Bank of Japan. Markets expect the BOJ to raise rates again by as much as 25 basis points. In June 2024 the BOJ hiked by 15 basis points. Next week comes monetary policy meetings from the European Central Bank and Federal Reserve. The expectation is that the ECB will cut by 25 basis points, while the Fed will keep rates unchanged.
The key outside markets today see the U.S. dollar index modestly higher. Nymex crude oil futures prices are slightly up and trading around $76.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.644%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Kansas City Fed manufacturing survey, and the weekly DOE liquid energy stocks report.
Technically, February gold futures bulls have the solid 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 contract high of $2,826.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,675.00. First resistance is seen at the overnight high of $2,766.40 and then at this week’s high of $2,774.40. First support is seen at $2,735.00 and then at $2,725.00. Wyckoff's Market Rating: 7.5.
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 $31.395 and then at this week’s high of $31.71. Next support is seen at $30.50 and then at $30.115. Wyckoff's Market Rating: 6.0.
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