Gold, Silver Prices Pausing In Their Uptrends

(Kitco News) - Gold and silver prices are near steady in early-afternoon U.S. trading Tuesday. A rebound in the U.S. dollar index this week is limiting buying interest in the precious metals markets. However, the bulls can correctly argue gold and silver are just seeing normal, and even healthy, downside corrections and pauses amid their price uptrends. April gold futures were last down $0.10 an ounce at $1,319.20. March Comex silver was last down $0.041 at $15.845 an ounce.

Chinese markets and some other Asian markets are closed this week for the Lunar New Year holiday, which is making for quieter trading in world markets most of this week. 

President Trump had dinner with Fed Chairman Jerome Powell and Treasury Secretary Steve Mnuchin at the White House Monday evening, to discuss the U.S. economy—the first time Powell and Trump had a face-to-face conversation since Powell became the Fed chair. Trump had considered firing Powell just a few months ago. Then Powell and the Fed shifted their tenor on U.S. monetary policy to a more dovish stance.

The U.S. highlight of the day will be President Trump’s State of the Union speech in the evening. Many market watchers will want to know what the president says about U.S.-China trade relations. The trade talks appear to be progressing ahead of the early-March deadline for a deal being reached.

The other outside market today sees Nymex crude oil prices lower trading just below $54.00 a barrel. The weaker oil market was another bearish “outside market” force working against the metals bulls today.

Technically, April gold futures prices closed nearer the session high today. Prices recently have seen normal profit taking after hitting an eight-month high last week. The bulls still have the firm overall near-term technical advantage. A 2.5-month-old price uptrend is 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 $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at this week’s high of $1,323.60 and then at last week’s high of $1,331.10. First support is seen at this week’s low of $1,312.70 and then at last week’s low of $1,302.70. Wyckoff's Market Rating: 7.0

March silver futures prices closed nearer the session low today. The silver bulls have the overall near-term technical advantage amid a seven-week-old price uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $15.195. First resistance is seen at $16.00 and then at last week’s high of $16.20. Next support is seen at this week’s low of $15.685 and then at $15.50. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed up 195 points at 281.40 cents today. Prices closed near the session high and hit a two-month high today on more short covering and bargain hunting. Upbeat trader and investor attitudes early this week, as evidenced by rallying world stock markets, is helping out the red industrial metal. The copper bulls and bears are back on a level overall near-term technical playing field. Prices have been trending higher for five weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 265.00 cents. First resistance is seen at today’s high of 282.45 cents and then at 285.00 cents. First support is seen at today’s low of 2.7970 cents and then at this week’s low of 275.05 cents. Wyckoff's Market Rating: 5.0.