Gold, Silver Prices Sell Off Amid Keener Risk Appetite

(Kitco News) – Gold and silver prices are lower and headed toward technically bearish weekly low closes in early U.S. trading Friday. Trader and investors are exhibiting very little risk aversion in the marketplace to end the trading week, and that’s negative for the safe-haven metals. February gold futures were last down $10.80 an ounce at $1,281.00. March Comex silver was down $0.096 at $15.44 an ounce.

European and Asian stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Traders and investors are in upbeat moods late this week on reports that surfaced Thursday afternoon the U.S. is considering lowering or even eliminating its trade tariffs on China as a way to get that nation to make more trade concessions in the current trade war. The idea came from U.S. Treasury Secretary Steven Mnuchin, reports said. However, other reports said U.S. Trade Representative Robert Lighthizer is against the idea, while another report said the Trump administration is not considering lowering tariffs on Chinese goods imported into the U.S. Next week, Chinese and U.S. trade officials are scheduled to meet next week in Washington. The marketplace is taking this news as a positive and reckons President Trump is demanding his advisors get a trade deal done with China by early March.

Remember that the U.S.-China trade dispute has been an up-and-down affair regarding progress on a deal, or lack thereof. Don’t be surprised if early next week finds a marked shift in attitudes on the matter—which would impact the precious metals markets.

The important outside markets today see the U.S. dollar index trading near steady. Meantime, Nymex crude oil prices are firmer and trading just below $53.00 a barrel.

U.S. economic data due for release Friday includes industrial production and capacity utilization and the University of Michigan consumer sentiment survey.

Technically, the gold bulls have the overall near-term technical advantage but are fading today. Prices are still in a two-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,300.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,260.00. First resistance is seen at the overnight high of $1,292.20 and then at this week’s high of $1,296.60. First support is seen at the January low of $1,278.10 and then at $1,275.00. Wyckoff’s Market Rating: 6.0

March silver futures bulls are fading as prices hit a two-week low overnight. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 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 the overnight high of $15.605 and then at this week’s high of $15.735. Next support is seen at $15.385 and then at $15.25. Wyckoff’s Market Rating: 6.0.

By Jim Wyckoff
For Kitco News


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