(Kitco News) – Gold and silver prices are again modestly lower in early U.S. trading Wednesday. Both markets are 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 $1.10 an ounce at $1,318.10. March Comex silver was last down $0.081 at $15.755 an ounce.
European and Asian stock markets were mixed but mostly weaker in quieter dealings overnight. Chinese markets and some other Asian markets are closed this week for the Lunar New Year holiday, which is making for the subdued trading in world markets this week. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.
The U.S. highlight Tuesday was President Trump’s State of the Union speech in the evening. Many market watchers thought the president might mention specifics on the U.S.-China trade-talks progress, but he did not. The trade talks appear to be making progress, ahead of the early-March deadline for a deal being reached.
In overnight news, Germany, the workhorse of the European Union economy, reported an unexpected drop in manufacturing orders in December, at down 1.6% from November. A slight rise was expected in the report.
The other key outside market today sees Nymex crude oil prices weaker trading around $53.50 a barrel.
U.S. economic reports due for release Wednesday include the weekly MBA mortgage applications survey, preliminary productivity and costs, the international trade report, and the weekly DOE liquid energy stocks report.
Technically, the April gold bulls still have the firm overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid 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 $1,306.50. Wyckoff’s Market Rating: 7.0
March silver futures bulls have the near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.50. 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.
By Jim Wyckoff
For Kitco News