Gold, Silver Prices Weaker As Investor Risk Appetite Remains Upbeat

(Kitco News) - Gold and silver prices are modestly down in early-afternoon U.S. trading Thursday. The metals have been trading sideways in quieter fashion for several sessions, awaiting a new fundamental spark to drive market direction. While this week’s uptick in trader and investor risk appetite has limited buying interest in safe-haven gold and silver, their bullish near-term technical chart postures have limited selling interest. February gold futures were last down $2.40 an ounce at $1,291.40. March Comex silverwas down $0.098 at $15.54 an ounce.

Some positive news coming from the Philadelphia Fed business survey this morning did put a bit of extra selling pressure into the metals markets, as the data gave the U.S. dollar index a slight lift.

U.S. stock indexes are firmer at midday, but European and Asian stock markets were mostly lower overnight. Traders and investors are now lamenting reports out this week that the U.S. and China trade talks may not be going as well as many thought just last week. Adding to the murkiness is reports that U.S. federal prosecutors will file criminal charges of theft of intellectual property against the big Chinese technology firm Huawei. The lingering government shutdown may also be negatively impacting the U.S. equities. The added uncertainty of limited, fresh U.S. economic data is an underlying negative for many markets and maybe also for some big companies.

U.K. Prime Minister Theresa May survived a no-confidence vote from Parliament late Wednesday, but the markets were little impacted on the protracted Brexit drama playing out.

In other news, the Euro Zone’s consumer price index for December came out at unchanged from November and up 1.6%, year-on-year, which was in line with market expectations. This is yet another very tame inflation report coming from a major world economy. This report lends credibility to the recent shift in the thought-process of many market watchers—to more accommodative monetary policies coming from the world’s major central banks in the coming months.

Technically, February gold futures bulls have the overall near-term technical advantage. A two-month-old price uptrend is still in place on the daily bar chart. The recent sideways pause is not bearish. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,260.00. First resistance is seen at this week’s high of $1,296.60 and then at the January high of $1,300.40. First support is seen at this week’s low of $1,286.50 and then at last week’s low of $1,280.20. Wyckoff's Market Rating: 6.5

March silver futures prices closed nearer the session low and hit a two-week low today. The silver still bulls have the overall near-term technical advantage. A two-month-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.25. First resistance is seen at this week’s high of $15.735 and then at $15.88. Next support is seen at $15.385 and then at $15.25. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed up 90 points at 268.25 cents today. Prices closed near the session high on more short covering. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 275.00 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 270.00 cents and then at 272.80 cents. First support is seen at 2.6500 cents and then at this week’s low of 261.65 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com

www.kitco.com