(Kitco News) – Gold prices are lower and near session lows after inexplicably coming under selling pressure despite higher silver prices and bullish outside markets on this day. It could be that a big futures trader was either dumping long positions or establishing fresh shorts. February gold was last down $11.30 at $2,014.40. March silver was last up $0.393 at $22.86.
China’s central bank eased its monetary policy Wednesday, announcing it would cut the reserve requirement ratio for its commercial banks by 50 basis points, according to officials. The move is expected to inject 1 trillion yuan ($140 billion) of liquidity into Chinese markets. China and Hong Kong stocks rallied on the news. Some analysts said the move by China’s central bank is not enough and more government spending is needed to shore up the world’s second-largest economy. Still, the news has implications for better Chinese demand for raw commodities, including metals.
Asian and European stock markets were mixed to firmer overnight. U.S. stock index futures are higher. The S&P and Nasdaq indexes have hit record highs again today as risk appetite in the general marketplace has up-ticked recently. That’s bearish for the safe-haven metals.
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are up and trading around $75.50 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.149%.
Technically, February gold futures bulls have the overall near-term technical advantage but have faded recently. A three-month-old uptrend on the daily bar chart is in serious jeopardy. Bulls’ next upside price objective is to produce a close above solid resistance at $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 $2,025.00 and then at this week’s high of $2,039.30. First support is seen at the January low of $2,004.60 and then at $2,000.00. Wyckoff’s Market Rating: 6.0.
March silver futures bears have the firm 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 October low of $21.17. First resistance is seen at today’s high of $23.09 and then at $23.50. Next support is seen at today’s low of $22.465 and then at $22.00. Wyckoff’s Market Rating: 3.5.
March N.Y. copper closed up 860 points at 387.95 cents today. Prices closed near the session high and hit a three-week high today. The copper bulls have regained the slight overall near-term technical advantage. A price downtrend on the daily bar chart has been negated. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the December high of 397.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 371.45 cents. First resistance is seen at today’s high of 388.70 cents and then at 393.30 cents. First support is seen at 383.00 cents and then at 380.00 cents. Wyckoff’s Market Rating: 5.5.
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