(Kitco News) – Gold and silver prices are down near midday U.S. trading Monday. A firmer U.S. dollar index and a slight rise in U.S. Treasury yields to start the trading week are bearish outside market forces for the metals markets. Both metals have also seen their near-term chart postures deteriorate recently, especially in silver. That’s inviting fresh technical selling. Gold and silver bulls are hoping for some friendlier fundamental news with this week’s batch of important economic data. February gold was last down $16.20 at $1,998.20. March silver was last down $0.226 at $23.04.

U.S. stock indexes are slightly up near midday. It’s a quieter start to the trading week, but at mid-week the Federal Reserve will announce its latest monetary policy meeting (FOMC) results. Key U.S. inflation data is also due out this week. The European Central Bank holds its regular monetary policy meeting Thursday.

Traders this week will also keep a closer eye on big U.S. Treasury bond and note auctions on Monday and Tuesday. The U.S. government will sell over $20 trillion of its debt this year. Some market watchers wonder how much longer the U.S. can keep selling more and more of its debt to the marketplace, without serious disruption.

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are near steady and trading around $71.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.26%.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures prices hit a three-week low today. The bulls still have the slight overall near-term technical advantage but are fading fast. Prices are still in a two-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,075.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,955.40. First resistance is seen at today’s high of $2,023.70 and then at the October high of $2,039.70. First support is seen at $1,990.00 and then at $1,975.00. Wyckoff’s Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices hit a three-week low today. The silver bulls have lost their overall near-term technical advantage. A two-month-old uptrend on the daily bar chart has been negated. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at $23.50 and then at $24.00. Next support is seen at $23.00 and then at $22.75. Wyckoff’s Market Rating: 5.0.

March N.Y. copper closed down 385 points at 379.20 cents today. Prices closed nearer the session low today. The copper bulls still have the slight overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the December high of 393.30 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 362.60 cents. First resistance is seen at today’s high of 383.60 cents and then at Friday’s high of 386.40 cents. First support is seen at today’s low of 377.55 cents and then at last week’s low of 372.90 cents. Wyckoff’s Market Rating: 5.5.

Try out my “Markets Front Burner” email report. My next one is due out today and is going to be entitled, “When China sneezes…” Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it’s free! Sign up to my new, free weekly Markets Front Burner newsletter, at  https://www.kitco.com/services/markets-front-burner.html .







Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Read the full article here

Share.

Comments are closed.