(Kitco News) - Gold prices are solidly lower in early U.S. trading Thursday and hit a two-week low. Profit taking from the shorter-term futures traders is featured today. Veteran commodity market watchers remember the old trading adage: “A bull market needs to be fed fresh fundamental news often.” Such has not been the case for gold lately, even though there remain bullish elements that will likely keep a floor under gold prices. Silver prices are slightly down today as the silver bulls have lost technical power. April gold was last down $27.90 at $2,902.30. March silver prices were last down $0.097 at $32.175.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins. Risk appetite is keener today after Nvidia’s earnings Wednesday afternoon beat market expectations and the company gave strong guidance going forward. The company’s stock had fallen in recent weeks amid uncertainty regarding future spending on artificial intelligence.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are firmer and trading around $69.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.308%. Bond yields have dipped lately. Bloomberg reports: “Investors in U.S. government bonds are starting to bet the Federal Reserve will soon need to pivot from worrying about sticky inflation to fretting about slowing economic growth.”
Friday comes the U.S. data point of the week, which is the January personal income and outlays report and its personal consumption expenditures (PCE) inflation indexes. The PCE price index is seen coming in at up 2.5%, year-on-year, compared to a rise of 2.6% in the December report.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the second estimate of fourth-quarter GDP, durable goods orders, pending home sales and the Kansas City Federal Reserve manufacturing index.
Technically, April gold futures bulls have the solid overall near-term technical advantage. However, a price uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,800.00. First resistance is seen at the overnight high of $2,935.80 and then at $2,950.00. First support is seen at the overnight low of $2,889.40 and then at $2,875.00. Wyckoff's Market Rating: 7.5.
March silver futures bulls have slight the overall near-term technical advantage but a price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.60. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at Wednesday’s high of $32.61 and then at $33.00. Next support is seen at the overnight low of $32.155 and then at this week’s low of $31.895. Wyckoff's Market Rating: 5.5.
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