(Kitco News) - Gold prices were ending the U.S. day session weaker Tuesday, on some profit taking and technical chart consolidation after posting modest gains and hitting a three-month high earlier in the day. A sell-off in the U.S. stock market did limit the downside for safe-haven gold. Also, gold bulls still have some technical momentum on their side as prices are in an uptrend on the daily bar chart. April Comex gold was last down $4.40 at $1,123.60 an ounce. March Comex silver was last down $0.083 at $14.26 an ounce.
Most world stock markets faced selling pressure Tuesday, including solid losses in the U.S. indexes at midday, mainly due to the resumption of the slide in crude oil prices. European and most Asian stock indexes were down Tuesday. Nymex crude oil prices fell back below $30.00 a barrel Tuesday, to suggest still more downside pressure to come. Reports Tuesday said most OPEC officials do not favor holding an emergency meeting to discuss oil production cuts. Meantime, Russian government officials said Russia is willing to discuss with world oil producers what it will take to shore up falling crude oil prices.
China’s Shanghai stock index did rally Tuesday on news Chinese monetary authorities injected fresh stimulus into their economy by lowering the amount of money required for a down-payment from first-time home buyers. Australia’s central bank said Tuesday that low inflation could prompt more monetary policy stimulus for that country.
The other key “outside market” on Tuesday finds the U.S. dollar index slightly weaker in afternoon dealings.
Technically, February gold futures prices were nearer the session low heading into the New York close. While the gold bears still have the overall near-term technical advantage, prices are in a choppy six-week-old uptrend and the bulls still have some 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 1,100.00. First resistance is seen at today’s high of $1,131.50 and then at $1,135.00. First support is seen at this week’s low of $1,115.30 and then at $1,108.50. Wyckoff’s Market Rating: 4.0
March silver futures prices were nearer the session low. The silver market bears still have the overall near-term technical advantage. However, trading action the past several weeks could be “basing” that precedes a market bottom being in place. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the December high of $14.64 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the contract low of $13.62. First resistance is seen at this week’s high of $14.42 and then at $14.64. Next support is seen at $14.07 and then at $14.00. Wyckoff's Market Rating: 3.0.
March N.Y. copper closed down 35 points at 205.20 cents today. Prices closed nearer the session low after hitting a four-week high early on. 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 today’s high of 208.75 cents and then at 210.00 cents. First support is seen at this week’s low of 202.85 cents and then at 200.00 cents. Wyckoff's Market Rating: 2.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
