(Kitco News) - Gold prices ended the U.S. day session near steady Tuesday, on some mild profit-taking pressure and some technical chart consolidation following Monday’s strong gains that pushed prices to an eight-month high just above $1,200.00. Sellers in safe-haven gold are still very timid, as world stock markets this week remain under selling pressure. April Comex gold was last down $0.50 at $1,197.40 an ounce. March Comex silver was last up $0.004 at $15.43 an ounce.
There is still risk aversion in the marketplace Tuesday. Japan’s Nikkei stock index dropped 5.4% in its biggest daily decline in almost three years. Japan’s 10-year bond yield dipped into negative territory and the Japanese yen rallied against the U.S. dollar on safe-haven buying. U.S. stock indexes were solidly lower Tuesday afternoon. China and some other Asian markets are closed so far this week for the Lunar New Year holiday.
Nymex crude oil prices were trading lower and just above $28.00 a barrel Tuesday afternoon. The International Energy Agency on Tuesday warned that crude oil prices could drop even farther as more Iranian and Iraqi crude oil come on to the word market. Investors and traders are reading that falling oil prices mean slowing world economic growth, which in turn is rattling stock and financial markets.
Market watchers are now looking forward to Fed Chair Janet Yellen’s testimony on the economy before the U.S. Congress on Wednesday and Thursday.
Technically, April gold futures prices closed nearer the session high. Prices are in an accelerating seven-week-old uptrend and the bulls have technical momentum and the firm near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,232. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of 1,164.50. First resistance is seen at this week’s high of $1,201.40 and then at $1,208.00. First support is seen at today’s low of $1,185.90 and then at $1,175.00. Wyckoff’s Market Rating: 7.0
March silver futures prices closed nearer the session high today. Prices Monday hit a 3.5-month high. The big rally in gold and a weaker U.S. dollar index recently have helped the silver market bulls. The silver market bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. A bullish “rounding-bottom” reversal pattern has also formed on the daily chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.60. First resistance is seen at Monday’s high of $15.48 and then at $15.75. Next support is seen at today’s low of $15.29 and then at $15.00. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed down 590 points at 203.15 cents today. Prices closed nearer the session low and hit a two-week low today. The copper bears have the firm overall near-term technical advantage and gained fresh downside momentum today. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at last week’s high of 213.80 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 205.00 cents and then at 207.50 cents. First support is seen at today’s low of 201.30 cents and then at 200.00 cents. Wyckoff's Market Rating: 2.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
