Gold, Silver Prices Back Down Some More

(Kitco News) - Gold and silver prices are modestly lower in early-afternoon U.S. trading Wednesday. Both markets are this week seeing normal and healthy corrective pullbacks from recent gains that pushed prices to multi-month highs. A rebound in the U.S. dollar index this week is also a negative for the precious metals markets. April gold futures were last down $2.90 an ounce at $1,316.20. March Comex silver was last down $0.096 at $15.74 an ounce.

Precious metals traders are looking for a new fundamental spark to ignite their markets. However, with Chinese markets and some other Asian markets closed this week for the Lunar New Year holiday, it’s making for some subdued trading in world markets so far this week.

The other key outside market today sees Nymex crude oil prices firmer and trading around $54.00 a barrel.

Technically, April gold futures prices closed nearer the session low today. 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 near the session low today on more profit taking. The silver bulls still 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 this week’s high of $15.935 and then at $16.00. 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 170 points at 283.40 cents today. Prices closed near mid-range and hit another two-month high today on more short covering and bargain hunting. The copper bulls have regained the overall near-term technical advantage. 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 284.80 cents and then at 285.80 cents. First support is seen at Tuesday’s low of 2.7970 cents and then at this week’s low of 275.05 cents. Wyckoff's Market Rating: 5.0.