Gold Ends Up After Choppy Trading Session

(Kitco News) - Gold prices ended a choppy, two-sided trading session on the upside Wednesday. The yellow metal scored a two-week low earlier in the day. In the end, a weaker U.S. dollar index trumped some upbeat U.S. economic data that increased the odds of a U.S. interest rate hike coming soon. April Comex gold was last up $7.10 an ounce at $1,232.70. March Comex silver was last up $0.076 at $17.965 an ounce.

It was a very busy day for U.S. economic data Wednesday. Key reports saw U.S. retail sales for January come in at a better-than-expected up 0.4%. The consensus was for a rise of 0.1%. Meantime, the U.S. consumer price index came in at a hotter-than-expected up 0.6% in January, versus expectations for a rise of 0.3%. These numbers fall into the camp of the U.S. monetary policy hawks, who want to see interest rates rise sooner rather than later. Ideas of a tighter U.S. monetary policy in 2017 have been a bearish element for the precious metals markets for months.

Despite the mostly upbeat U.S. economic data Wednesday, the U.S. dollar index did back off its daily high and traded just below unchanged in afternoon dealings. A weaker greenback is a positive for the precious metals market bulls.

Federal Reserve Chair Janet Yellen spoke to the U.S. House of Representatives on U.S. monetary policy Wednesday, but her comments were not much different from those she made to the Senate on Tuesday. On Tuesday Yellen provided an upbeat assessment of the world’s major economies. She also hinted the U.S. interest rates will be increased sooner rather than later.

Technically, April gold futures prices closed nearer the session high. The gold bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,236.00 and then at last week’s high of $1,246.60. First support is seen at today’s low of $1,217.50 and then at $1,210.00. Wyckoff's Market Rating: 6.0

March silver futures prices closed nearer the session high and closed at a three-month high close today. The silver market bulls have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at this week’s high of $18.09 and then at $18.25. Next support is seen at this week’s low of $17.73 and then at $17.545. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed up 50 points at 274.15 cents today. Prices closed near mid-range. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at this week’s high of 282.30 cents and then at 285.00 cents. First support is seen at this week’s low of 271.35 and then at 270.00 cents. Wyckoff's Market Rating: 7.5.

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