Gold, Silver Prices Weaken As U.S. Dollar Rallies

(Kitco News) - Gold and silver prices are moderately lower in early-afternoon U.S. trading Thursday, with gold notching at three-week low. The metals are pressured today by a solid rally in the U.S. dollar index, which also hit a three-week high. Some technical selling is also occurring in gold and silver, as their near-term chart postures have deteriorated recently. February gold futures were last down $4.20 an ounce at $1,279.80. March Comex silver was down $0.075 at $15.30 an ounce.

In fundamental developments today, the European Central Bank’s regular monetary policy meeting ended with no change in policy, as expected. The metals did not significantly react to the news, or to ECB President Mario Draghi’s press conference.

Gold and silver traders continue to seek out fresh news to drive their markets. The partial U.S. government shutdown drags on, along with the lack of U.S. economic data to drive many markets. A top Trump administration economic advisor on Wednesday said the shutdown could prompt zero growth in the U.S. economy in the first quarter of 2019.

The other outside market today sees Nymex crude oil prices are higher and trading around $53.00 a barrel. Political turmoil in Venezuela, including the U.S. recognizing the opposition leader as leader of the country, is a potentially bullish element for the oil market. The U.S. may sanction Venezuelan oil exports.

Technically, February gold futures bulls still have the overall near-term technical advantage, but are fading and need to show fresh power soon. 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 $1,250.00. First resistance is seen at this week’s high of $1,286.00 and then at $1,292.20. First support is seen at today’s low of $1,275.30 and then at $1,270.00. Wyckoff's Market Rating: 6.0

March silver futures prices closed near mid-range today. The silver bulls still have the slight overall near-term technical advantage, but are fading. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $15.955 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at this week’s high of $15.445 and then at $15.60. Next support is seen at this week’s low of $15.195 and then at $15.05. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed down 105 points at 264.40 cents today. Prices closed nearer the session low. 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 267.65 cents and then at 270.00 cents. First support is seen at 2.6165 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.5.