(Kitco News) - Gold prices were ending the U.S. day session moderately lower, with selling interest tied to a good bounce in the U.S. stock market Thursday. A higher U.S. dollar index on this day was also a negative “outside market” force working against the precious metals market bulls. The gold bulls are fading this week and need to step up and show fresh power very soon. A technically bearish weekly low close on Friday would likely be an invitation for fresh chart-based selling early next week. February Comex gold was last down $9.30 at $1,077.80 an ounce. March Comex silver was last down $0.331 at $13.825 an ounce.
Trader and investor anxiety returned to the world marketplace overnight. Stock markets in Asia and Europe were mostly lower, following the rout in U.S. equities that occurred Wednesday afternoon. However, U.S. stock indexes were posting decent gains in early afternoon trading Thursday. But remember this week has seen the stock indexes fade heading into their closes.
Worries about falling raw commodity prices, led by crude oil, are partly responsible for the sharp sell-offs in world stock markets early this year. Slowing economic growth from the world’s second-largest economy, China, is also prompting uneasiness and is also causing turmoil in the world’s periphery currency markets.
There was another terror attack Thursday, this time in Jakarta, Indonesia, which is also making for nervous markets. Bomb blasts and gunfire reportedly killed at least seven people. Earlier this week there was a terror attack in Turkey.
U.S. economic data released Thursday was light and included the weekly jobless claims report and import and export prices—neither of which had a significant impact on the precious metals markets.
Technically, February gold futures prices closed nearer the session low today. The gold bears have the firm overall near-term technical advantage and gained some more downside momentum today. A bearish weekly low close on Friday would likely bring in the chart-based sellers on next Monday. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,113.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,056.50. First resistance is seen at $1,088.30 and then at today’s high of $1,095.40. First support is seen at $1,075.00 and then at $1,070.00. Wyckoff’s Market Rating: 2.5
March silver futures prices closed nearer the session low today and gave back most of Wednesday’s good gains. The silver market bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $14.425 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the contract low of $13.64. First resistance is seen at $14.00 and then at this week’s high of $14.205. Next support is seen at this week’s low of $13.73 and then at $13.64. Wyckoff's Market Rating: 1.5.
March N.Y. copper closed up 255 points at 198.15 cents today. Prices closed nearer the session high on short covering after hitting a contract and six-year low early on today. Prices did score a mildly bullish “outside day” up on the daily bar chart today, and if there is strong follow-through buying on Friday then a more bullish “key reversal” up would be confirmed, which would be one chart clue that a market bottom is in place. But right now the copper bears have the solid overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 205.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 190.00 cents. First resistance is seen at 200.00 cents and then at this week’s high of 201.55 cents. First support is seen at today’s contract low of 194.25 cents and then at 192.50 cents. Wyckoff's Market Rating: 1.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
