(Kitco News) – Gold and silver prices are down in midday U.S. trading Wednesday, following a U.S. economic report that came in better than market expectations. Gold prices hit a five-week low. The upbeat U.S. retail sales report worked to temper market expectations of a Federal Reserve interest rate decrease coming soon. February gold was last down $22.00 at $2,008.40. March silver was last down $0.393 at $22.705. The gold market bulls do not want to see prices drop below the key $2,000.00 level, basis February futures, as there are likely a big batch of pre-placed sell stop orders residing just below that level.
A big load of U.S. economic data released Wednesday was highlighted by the December retail sales report that came in higher than expected, at up 0.6% from November and beat market expectations of up 0.4%. That report boosted the U.S. dollar index and prompted an up-tick in U.S. Treasury yields.
U.S. stock index futures are lower at midday.
In overnight news, China reported its economic growth was the slowest in decades in 2023 (save for the Covid lockdown years), amid weakening consumer confidence and the slumping property sector. China’s gross domestic product expanded by 5.2% in the fourth quarter and for the year 2023. China’s Premier Li Qiang mentioned the weak GPD data in a speech in Davos, Switzerland on Tuesday. While below market expectations, the 4Q GDP number did meet the Chinese government’s expectations for economic growth in 2023. Today’s numbers helped to pressure commodity markets, including crude oil and metals, as China, the world’s second-largest economy, is a voracious consumer of raw commodities.
The key outside markets today see the U.S. dollar index modestly up but down from the daily high after hitting a four-week high early on today. Nymex crude oil prices are down a bit and trading around $71.75 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.106%.
Technically, February gold futures prices hit a five-week low today. The bulls still have the overall near-term technical advantage but are fading. A three-month-old uptrend on the daily bar chart is now in some jeopardy. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $2,067.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,017.30 and then at $2,025.00. First support is seen at $2,000.00 and then at the December low of $1,987.90. Wyckoff’s Market Rating: 6.0.
March silver futures were poised to close at two-month-low close today. The silver bears have the overall near-term technical advantage. A six-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the November low of $22.26. First resistance is seen at today’s high of $23.11 and then at this week’s high of $23.50. Next support is seen at last week’s low of $22.63 and then at $22.50. Wyckoff’s Market Rating: 3.0.
March N.Y. copper closed down 340 points at 373.25 cents today. Prices closed nearer the session low and hit a two-month low today. The copper bears have the overall near-term technical advantage. Prices are in a fledgling downtrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 355.75 cents. First resistance is seen at today’s high of 377.05 cents and then at this week’s high of 379.00 cents. First support is seen at today’s low of 372.25 cents and then at 370.00 cents. Wyckoff’s Market Rating: 3.5.
Try out my “Markets Front Burner” email report. My next one is due out today and is going to be entitled, “When China sneezes…” Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it’s free! Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html .
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Credit: Source link