Gold Sees Buyer Interest Squelched by Bearish Outside Mkts.

(Kitco News) - Gold and silver prices are trading near stead in early-afternoon U.S. trading Thursday. Prices are well off their daily lows as the U.S. dollar index has backed down from its daily high. Still, the greenback has rallied strongly this week and hit a four-week high overnight. Combined with sharply lower crude oil prices today, these two important outside markets worked to limit buying interest in the precious metals markets. April gold futures were last down $0.10 an ounce at $1,314.30. March Comex silver was last down $0.001 at $15.70 an ounce.

The U.S. dollar has appreciated this week following a strong U.S. jobs report issued last Friday, which contrasts with some downbeat economic data coming from other major economies recently. Just last week the USDX hit a three-week low. The other key outside market today sees Nymex crude oil prices solidly down and trading just above $52.00 a barrel. It will be tough for the metals and other raw commodity markets to sustain price uptrends if the oil market starts to significantly erode again.

Chinese markets and some other Asian markets have been closed this week for the Lunar New Year holiday, which is making for subdued trading in many world markets this week.

There was more downbeat economic news coming out of the European Union, the world’s third-largest economy. The EU’s European Commission cut its growth forecast for the Euro zone to 1.3% in 2019, which is well down from a 1.9% growth rate forecast in November. The report blamed in part the U.S.-China trade war for the slower growth rate. The report also lowered Euro zone inflation expectations, to 1.4% in 2019 and 1.5% in 2020. And in Germany, industrial output in December was down 0.4% from November when a rise of 0.8% was expected.

The Bank of England held its regular monetary policy meeting today, but no change were made and none were expected.

Technically, April gold futures prices closed nearer the session high today. The bulls still have the overall near-term technical advantage. A 2.5-month-old price uptrend is still 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 $1,331.10. 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 $1,331.10. First support is seen at today’s low of $1,306.40 and then at last week’s low of $1,302.70. Wyckoff's Market Rating: 6.5

March silver futures prices closed near the session high 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 this week’s high of $15.935 and then at $16.00. Next support is seen at today’s low of $15.635 and then at $15.50. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed down 40 points at 283.25 cents today. Prices closed near mid-range and hit another two-month high today. The copper bulls have 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 285.05 cents and then at the September high of 288.80 cents. First support is seen at 2.7970 cents and then at this week’s low of 275.05 cents. Wyckoff's Market Rating: 6.0.