Gold, Silver Weaker Amid Profit Taking, Chart Backing and Filling

(Kitco News) - Gold and silver prices were ending the U.S. day session slightly lower Monday. Some chart consolidation and mild profit taking from the shorter-term futures traders were featured amid a lack of major, markets-moving news to start the trading week. February Comex gold was last down $0.70 an ounce at $1,332.50. March Comex silver was last down $0.026 at $17.01 an ounce.

While the U.S. government remained shut down for the third day Monday, U.S. lawmakers appeared to have reached a deal that would reopen the government. A House vote on the matter was expected Monday afternoon. The world marketplace saw a limited reaction to the U.S. government shutdown.

Focus of the marketplace this week is also on Davos, Switzerland and its World Economic Forum. World government officials, corporate heads and other celebrities and bigshots will be at the yearly event to discuss economics and ways to make the world a better place. The highlight of the event was supposed to be a speech by U.S. President Trump. However, reports now say Trump may not make the trip due to the government shutdown.

The key outside markets on Monday saw the U.S. dollar index slightly lower. Prices are hovering near last week’s 3.5-year low. Meantime, Nymex crude oil prices were also slightly lower after hitting a nearly four-year high last week.

Technically, February gold futures prices closed near mid-range. The gold bulls still have the overall near-term technical advantage, amid a six-week-old uptrend in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,365.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at last Friday’s high of $1,338.20 and then at last week’s high of $1,345.00. First support is seen at last week’s low of $1,324.30 and then at the $1,320.00. Wyckoff's Market Rating: 6.5

March silver futures prices closed nearer the session low today. The bulls have the slight overall near-term technical advantage, amid recent choppy and sideways trading. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $17.45 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 $17.14 and then at $17.32. Next support is seen at last week’s low of $16.80 and then at $16.60. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed up 115 points at 319.90 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage, but have faded a bit. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high if 332.20 cents. The next downside price objective for the bears is closing prices below solid technical support at 310.00 cents. First resistance is seen at 323.40 cents and then at 326.00 cents. First support is seen at the January low of 317.85 cents and then at 315.00 cents. Wyckoff's Market Rating: 6.5.