Gold, Silver Succumb To Follow-Through Selling Pressure

(Kitco News) - Gold and silver markets could not hold modest early gains and were ending the U.S. day session weaker Tuesday, on some follow-through selling from Monday’s losses. A weaker U.S. dollar index limited selling pressure in the metals. However, the USDX was well up from its overnight low during the U.S. day session. Lower crude oil prices today also weighed on the precious metals markets. April Comex gold futures were last down $3.50 an ounce at $1,341.50. March Comex silver was last down $0.037 at $17.09 an ounce.

A sell-off in the U.S. stock markets did not benefit the safe-haven gold and silver markets much today. World equities markets worldwide are worried about rising bond yields. The U.S. 10-year note rose to a more-than-three-year high yield Tuesday. However, if the global stock markets finally come off their highs in significant fashion, such would be bullish for the competing asset class of gold and silver.

This is a busy events week for the marketplace. Tuesday evening President Trump delivers his state-of-the-union speech. The Federal Open Market Committee (FOMC) started its monetary policy meeting Tuesday morning and it ends Wednesday afternoon. This will be Fed Chair Janet Yellen’s last meeting. On Friday the monthly U.S. employment situation report from the Labor Department is due out. That is arguably the most important U.S. economic data point of the month.

Technically, April gold futures prices closed the day session nearer the session low. The gold bulls still have the overall near-term technical advantage, but need to show fresh power soon to keep 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 January high of $1,370.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,320.00. First resistance is seen at today’s high of $1,352.50 and then at this week’s high of $1,356.30. First support is seen at today’s low of $1,337.50 and then at $1,330.00. Wyckoff's Market Rating: 6.5

March silver futures prices closed nearer the session low today. The silver bulls have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $16.735. First resistance is seen at today’s high of $17.31 and then at this week’s high of $17.47. Next support is seen at $17.00 and then at $16.80. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed down 60 points at 318.80 cents today. Prices closed nearer the session high. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 332.20 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 310.80 cents. First resistance is seen at today’s high of 321.10 cents and then at this week’s high of 323.55 cents. First support is seen at today’s low of 315.20 cents and then at 312.50 cents. Wyckoff's Market Rating: 6.5.