Gold, silver prices see mild pullbacks from recent good gains

(Kitco News) -  Gold and silver prices are slightly lower in early U.S. futures trading Monday, on downside corrections after prices late last week hit seven-week highs. Bullish charts and ideas of better consumer demand for precious metals in 2020 are propelling prices. February gold futures were last down $2.20 an ounce at 1,515.80. March Comex silver prices were last down $0.008 at $17.935 an ounce.

A feature in a quieter marketplace recently has been the rally in gold prices. Gold is on track to post its best annual price performance since 2010, with a gain of around 18% for the year.

Asian and European stock indexes were narrowly mixed in quieter overnight trading. The U.S. stock indexes are also pointed toward mixed openings when the New York day session begins on this last full trading day of 2019.

The markets are showing little reaction to the weekend U.S. air strikes against terrorist positions located in Iraq and Syria.

Trader and investor attitudes remain upbeat, due in large part to the world’s two largest economies, the U.S. and China, seeing a thaw in the more-than-two-year-old trade war. Most believe a partial trade deal will be signed in January.

A feature in the marketplace recently has been a rally in gold prices to a three-month high. Gold is on track to post its best annual price performance since 2010, with a gain of around 18% for the year.

The key “outside markets” today see the U.S. dollar index slightly lower. The greenback bulls have faded to end the year. Meantime, Nymex crude oil prices are modestly up and trading close to a multi-month high at around $62.00 a barrel.

U.S. economic data due for release Monday includes advance economic indicators, the ISM Chicago business survey, pending home sales and the Texas manufacturing outlook survey.

Technically, the gold bulls have the overall near-term technical advantage as an accelerating price uptrend is in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,527.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,491.60. First resistance is seen at $1,520.00 and then at $1,525.00. First support is seen at Friday’s low of $1,512.10 and then at last Thursday’s low of $1,502.10. Wyckoff's Market Rating: 6.5

March silver futures bulls also have the overall near-term technical advantage as a fledgling uptrend line is in place on the daily bar chart. A minor bullish pennant pattern has also just formed. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at last week’s high of $18.135 and then at $18.25. Next support is seen at $17.81 and then at $17.50. Wyckoff's Market Rating: 6.5.