Gold, Silver Prices Pounded By Technical Sellers

(Kitco News) - Gold and silver prices were ending the U.S. day session solidly lower and near their daily lows Wednesday. Chart-based selling pressure from the shorter-term futures traders kicked in today as prices dropped below near-term technical support levels in both gold and silver markets, to trigger pre-placed sell stop orders. February Comex gold was last down $13.30 an ounce at $1,285.90.March Comex silver was last down $0.358 at $16.56 an ounce.

The world marketplace, including safe-haven gold, did not react significantly to news late Tuesday that North Korea launched another ballistic missile—one the U.S. military said could reach anywhere in the world. The U.S. has called an emergency meeting of the United Nations Security Council, after the North Korea missile launch. President Trump on Tuesday said of the missile firing: “We will take care of that situation.”

The gold market bears seemed to sense opportunity as the U.S. day session progressed Tuesday, due in part to the lack of a bullish reaction to the North Korea news. However, Markets and traders are fickle. Don’t be surprised if markets do show bigger reactions on the next development with North Korea.

World stock markets were again mostly higher Wednesday. Record highs have been scored this week in U.S. stock indexes. The rallying world stock markets are a bearish element for the competing asset class of precious metals.

Investors and traders are awaiting the results of a U.S. tax-cut plan being pushed through Congress. The Senate is likely to vote on the tax legislation later this week. It is not a clear-cut consensus that this bill will pass the Senate.

Federal Reserve Chair Janet Yellen spoke to Congress Wednesday morning on the U.S. economic outlook. It was likely her last appearance before lawmakers. She made no comments that were deemed markets-moving.

The OPEC oil cartel meets on Thursday to discuss extending its oil-production quotas. Most believe the cartel will indeed stick to its present overall production level.

The U.S. dollar index was a bit weaker today. The dollar index bears have the overall near-term technical advantage, which means the likely path for the greenback will remain sideways to lower.

Meantime, Nymex crude oil futures prices were lowera again today. Bulls are fading this week. Stiff chart resistance layers lie above the market.

Technically,February gold futures prices closed nearer the session low today. The bulls still have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. Prices are still in a gentle, four-week-old uptrend on the daily bar chart, but just barely. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,325.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,267.00. First resistance is seen at $1,294.00 and then at this week’s high of $1,303.40. First support is seen at today’s low of $1,285.10 and then at $1,280.00. Wyckoff's Market Rating: 5.5

March silver futures prices closed near the session low and hit a six-week low today. The silver bears have gained the overall near-term technical advantage with this week’s price downdraft. Prices this week have seen a bearish downside “breakout” from a choppy trading range on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $17.59 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.435. First resistance is seen at $16.85 and then at $17.00. Next support is seen at today’s low of $16.56 and then at $16.435. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed down 295 points at 306.90 cents today. Prices closed near the session low again today on more profit taking and weak long liquidation. The copper bulls still have the overall near-term technical advantage, but are fading. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 320.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 311.25 cents and then at Tuesday’s high of 315.80 cents. First support is seen at the November low of 305.50 cents and then at 302.50 cents. Wyckoff's Market Rating: 6.0.