Gold Pulls Back Amid Record-Setting Day for U.S. Stock Market

(Kitco News) - Gold prices ended the U.S. day session lower Wednesday, as a “risk-on” trader and investor mentality has been prevalent in the world marketplace this week—evidenced by world stock markets that are on the rise and U.S. stock indexes hitting record highs on this day. Profit taking from recent gains was also featured in gold today, as prices on Tuesday hit a two-month high. February Comex gold was last down $13.60 an ounce at $1,197.20. March Comex silver was last down $0.205 at $16.985 an ounce.

World stock markets were higher Wednesday and the U.S. Dow Jones Industrial Average pushed above 20,000 for the first time ever. U.S. President Donald Trump said he would revive the U.S. economy when he was running for the office, and this week he is signing directives to fulfill that pledge, including rolling back regulations on business and signing a controversial oil-pipeline-construction directive.

The U.S. dollar index was lower Wednesday. The index Tuesday hit a six-week low. Recent selling pressure has produced early technical clues the dollar index has put in a market top. Dollar index prices have been trending lower for three weeks. This element is a bullish underlying situation for the raw commodity sector, including the precious metals.

The other key “outside market” on Wednesday afternoon saw Nymex crude oil prices trade near steady in choppy action. While, OPEC and Russian oil officials have said they are holding to their stated plans to reduce their collective crude oil output,  that news has been factored into crude oil prices.

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Technically, February gold futures prices closed nearer the session low. The gold bears now have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,225.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,175.00. First resistance is seen at $1,200.00 and then at today’s high of $1,209.30. First support is seen at today’s low of $1,192.60 and then at $1,187.50. Wyckoff's Market Rating: 4.0

March silver futures prices closed near mid-range. The silver market bears have the near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $17.16 and then at the January high of $17.36. Next support is seen at today’s low of $16.78 and then at $16.61. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed up 5 points at 270.80 cents today. Prices closed near mid-range and hit a seven-week high today. The copper bulls have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 275.30 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at today’s high of 273.20 cents and then at 275.30 cents. First support is seen at today’s low of 268.50 cents and then at 263.95 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com