(Kitco News) – Gold prices are down in midday U.S. trading Monday but well up from their session lows. The yellow metal hit a three-week low early on today. Amid a lack of major fresh, fundamental news to start the trading week, precious metals traders are focusing on the outside markets, and raw commodity sector leader crude sees its price sharply down. February gold was last down $10.90 at $2,038.70. March silver was last up $0.065 at $23.385.
Asian and European stock markets were mixed overnight. U.S. stock index futures are mixed at midday.
In weekend news, U.S. congressional leaders have agreed upon a bipartisan federal budget plan for the next year. The House and Senate now have about two weeks to pass the measure, which may not be easy.
The U.S. data points of the week will be the December consumer price index report on Thursday and the December producer price index report on Friday. U.S. inflation has cooled in recent months, which has allowed the Federal Reserve to back off on its tighter monetary policy. The CPI report is seen up 3.3%, year-on-year versus a rise of 3.1% in the November report.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are strongly lower and trading around $70.25 a barrel. Reports said Saudi Arabia has lowered the price of its oil to some of its customers, in a signal of a weaker demand outlook. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 3.974%.
Technically, February gold futures bulls have the overall near-term technical advantage but have faded a bit. Prices are still in a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,053.30 and then at last Friday’s high of $2,071.10. First support is seen at today’s low of $2,022.70 and then at $2,015.00. Wyckoff’s Market Rating: 6.5.
March silver futures bears have the overall near-term technical advantage. A five-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 $25.00. 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 Friday’s high of $23.715 and then at $24.00. Next support is seen $23.00 and then at the December low of $22.785. Wyckoff’s Market Rating: 4.0.
March N.Y. copper closed up 130 points at 381.90 cents today. Prices closed nearer the session high today and hit a three-week low early on. The copper bulls have the slight overall near-term technical advantage but have faded. Prices are still in a choppy, 2.5-month-old uptrend on the daily bar chart, but just barely. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the July high of 404.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 372.90 cents. First resistance is seen at Friday’s high of 386.60 cents and then at last week’s high of 391.20 cents. First support is seen at today’s low of 378.95 cents and then at 372.90 cents. Wyckoff’s Market Rating: 5.5.
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