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Gold and silver prices are lower in midday U.S. trading Monday, with silver hitting a 2.5-month low and gold a five-week bottom. The near-term chart postures for both metals have deteriorated recently, which are prompting some technical selling pressure. Also, weak long liquidation in the gold and silver futures markets is likely featured today, ahead of a key U.S. inflation report Tuesday. April gold was last down $10.40 at $1,864.00 and March silver was down $0.175 at $21.90.
Traders and investors are awaiting the U.S. economic data point of the week on Tuesday morning--the consumer price index report for January. The CPI is seen up 6.2%, year-on-year, compared to the rise of 6.5% in the December report. On Thursday, the U.S. producer price index report is released. The expected CPI number is still hot—even if it is down from previous CPI reports--and a print that comes in close to it may still keep the Federal Reserve in a monetary-policy-tightening mode for the next few months. That’s likely in part why gold and silver bulls are mostly standing on the sidelines today.
Global stock markets were mixed overnight, with European shares mostly higher and Asian shares mostly lower. U.S. stock indexes are higher at midday.
Gold price is going to $2,200 as central banks break the global economy - Degussa's Thorsten Polleit
The key outside markets see the U.S. dollar index slightly firmer. Nymex crude oil futures prices are near steady and trading around $79.50 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.724%.
There was no major U.S. economic data released Monday.
Technically, April gold futures prices hit a five-week low today. Bulls still have the slight overall near-term technical advantage. However, they continue to fade. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,877.20 and then at $1,885.00. First support is seen at $1,850.00 and then at $1,835.00. Wyckoff's Market Rating: 5.5
March silver futures prices hit a 2.5-month low today. The silver bulls and bears are on a level overall near-term technical playing field but bears have some momentum on their side. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at $22.25 and then at last week’s high of $22.635. Next support is seen at $21.50 and then at $21.00. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed up 360 points at 405.35 cents today. Prices closed near the session high. The copper bulls have the overall near-term technical advantage. However, a fledgling price downtrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at last week’s high of 412.05 cents and then at 417.50 cents. First support is seen at the February low of low of $3.9930 and then at 395.00 cents. Wyckoff's Market Rating: 6.0.
By Jim Wyckoff
For Kitco News
