Gold Ends Near Steady On Profit Taking, Chart Consolidation From Recent Gains

(Kitco News) - Gold prices ended the U.S. day session near unchanged Thursday, on mild profit taking and some technical chart consolidation after scoring a nearly three-month high Wednesday. There is still a bit of trader and investor uncertainty in the marketplace, which continues to support safe-haven gold. February Comex gold was last down $0.80 at $1,115.00 an ounce. March Comex silver was last down $0.214 at $14.245 an ounce.

Global stock markets were mixed Thursday, in the wake of the Federal Open Market Committee (FOMC) two-day meeting that ended Wednesday afternoon with no change in U.S. interest rates. No change was expected. However, the FOMC statement was deemed a bit dovish. Some called the statement confusing. The statement intimated that the risks to the U.S. economy are no longer in balance due to recent financial and stock market instability. However, the statement did not say outright that Fed members are worried about the recent world stock market sell-offs. The marketplace has quickly moved to other matters.

Nymex crude oil prices were higher Thursday on rumors OPEC may meet to initiate production cuts. However, as of this writing there is no confirmation of such. The other key “outside market” on Thursday saw the U.S. dollar index trading weaker. These outside markets were in favor of the precious metals bulls Thursday, which did limit selling pressure on the metals.

Technically, February gold futures prices closed nearer the session low on some consolidation after hitting a three-month high on Wednesday. While the gold bears still have the overall near-term technical advantage, prices are in a choppy five-week-old uptrend and the bulls have technical momentum on their side. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,150.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,092.50. First resistance is seen at this week’s high of $1,128.00 and then at $1,135.00. First support is seen at today’s low of $1,109.80 and then at $1,100.00. Wyckoff’s Market Rating: 4.0

March silver futures prices closed nearer the session low. Prices Wednesday hit a seven-week high. The silver market bears have the overall near-term technical advantage. However, this week’s price action could be the beginning of a bullish upside “breakout” from the sideways trading action the past several weeks that could have been “basing” that would precede a market bottom being in place. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 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 $14.50 and then at the December high of $14.64. Next support is seen at today’s low of $14.07 and then at $14.00. Wyckoff's Market Rating: 3.0.

March N.Y. copper closed down 115 points at 205.25 cents today. Prices closed near mid-range. The copper bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 215.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the contract low of 193.55 cents. First resistance is seen at this week’s high of 207.55 cents and then at 210.00 cents. First support is seen at 203.10 cents and then at 200.00 cents. Wyckoff's Market Rating: 2.5.