(Kitco News) - Comex gold futures prices closed solidly lower, near the daily low and hit a fresh nearly four-month low Thursday. Fresh technical selling amid waning safe-haven demand pressured gold prices. Comex gold last traded down $14.80 at $1,318.20 an ounce. Spot gold last traded down $26.70 at $1,320.00.

The gold market is seeing reduced safe-haven investment demand, what with the U.S. stock indexes trading near multi-year highs, no fresh headline news regarding European Union financial problems, and no major geopolitical flare-ups occurring. Indeed, investors worldwide have gained a better appetite for taking risk, which is hampering the safe-haven gold market. However, the gold market is still just one step away from a solid price rebound or an extended rally should a significant geopolitical or financial market event suddenly and unexpectedly appear in the news headlines.

Lower crude oil futures prices Thursday, which hit a fresh seven-week low, also worked to pressure the precious metals markets. Crude oil has seen bearish near-term technicals develop that do suggest more downside price pressure in the near term, and that's also an underlying bearish factor for gold.

The U.S. dollar index traded weaker again Thursday and hit another fresh 2.5-month low. The dollar index bears have downside near-term technical momentum and if the index remains on a downward path in the near term, look for gold prices to at least see limited selling interest. Gold bulls have been disappointed recently that the yellow metal has not seen more upside support from the weaker dollar index.

The London P.M. gold fix was $1,334.50 versus the previous P.M. fixing of $1,328.00.

Technically, February Comex gold futures prices closed nearer the session low Thursday and scored a bearish "outside day" down on the daily bar chart. Serious near-term technical damage has been inflicted in gold recently. Prices are in a four-week-old downtrend on the daily bar chart. A bearish head-and-shoulders top reversal pattern is also playing out on the daily bar chart.

Gold market bulls' next near-term upside technical objective is to produce a close above solid technical resistance at this week's high of $1,352.40 in February futures. Bears' next near-term downside price objective is closing prices below psychological support at $1,300.00. First resistance is seen at $1,325.00 and then at $1,332.00. Support is seen at Thursday's low of $1,315.70 and then at $1,310.00. Wyckoff's Market Rating: 5.0.

March silver futures closed down 18.8 cents at $26.94 an ounce Thursday. Prices closed nearer the session low today and were pressured by lower gold and crude oil prices. Prices Tuesday hit a fresh seven-week low. Silver prices are in a four-week-old downtrend on the daily bar chart. Some near-term chart damage has been inflicted in silver recently.

The next downside price objective for the silver bears is closing prices below solid technical support at $26.00. Bulls' next upside price objective is producing a close above solid technical resistance at this week's high of $27.95 an ounce. First resistance is seen at $27.25 and then at $27.50. Next support is seen at Thursday's low of $26.775 and then at this week's low of $26.54. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed up 670 points at 433.40 cents Thursday. Prices closed nearer the session high. The bulls had faded a bit earlier this week and needed to show fresh power, which they have done. The copper bulls have the overall near-term technical advantage. Bulls' next upside objective is pushing and closing prices above solid technical resistance at the January all-time high of 449.80 cents. The next downside price objective for the bears is closing prices below solid technical support at 410.00 cents. First resistance is seen at Thursday's high of 435.55 and then at this week's high of 437.25 cents. First support is seen at 430.00 cents and then at Thursday's low of 427.55 cents. Wyckoff's Market Rating: 7.0.

 

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

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