Gold Sees Normal Profit-Taking After Recent Gains

(Kitco News) - Gold prices are lower in early U.S. trading Thursday, on a normal profit-takingpullback after hitting a four-month high Tuesday. Silver prices are also seeingsome downside corrective action today, after prices hit a two-month high onTuesday. February Comex gold was last down $10.40 an ounce at $1,328.90. March Comex silver was last down $0.096 at $17.07 an ounce.

Thereare growing concerns in the marketplace regarding a potential U.S. governmentshutdown starting this weekend, as U.S. lawmakers cannot agree on a budget.This worry has limited buying interest in U.S. equities. An actual governmentshutdown would likely be supportive for the safe-haven gold market.

Inother overnight news, China's economy grew by 6.9% in 2017, up from 6.7% in2016. Many China watchers had expected the world's second-largest economy tocontract in 2017. China is the world's largest raw commodity importer.

Thekey outside markets on Thursday morning see the U.S. dollar index slightly higheron a corrective bounce after hitting a 3.5-year low earlier this week. Thegreenback bears still have the solid overall near-term technical advantage.

Meantime,Nymex crude oil prices are near steady after hitting a three-year high of $64.89a barrel on Tuesday. The oil bulls are technically strong to suggest still moregains in the near term.

U.S.economic data due for release Thursday includes the weekly jobless claimsreport, new residential construction, the Philadelphia Fed business survey, andthe weekly DOE liquid energy stocks report.

Technically,Februarygold futures bulls have the overall near-term technical advantage.Prices are in a five-week-old uptrend on the daily bar chart. Bulls' nextupside technical objective is pushing and closing prices above chart resistanceat the September high of $1,365.80. Bears' next near-term downside pricebreakout objective is closing prices below solid technical support at $1,300.00.First support is seen at today's low of $1,324.30 and then at $1,320.00. First resistanceis seen at today's high of $1,331.70 and then at $1,340.00. Wyckoff's MarketRating: 6.0

Marchsilver bulls have the overall near-term technical advantage. Prices are in a five-week-olduptrend on the daily bar chart. The next upside price breakout objective isclosing futures prices above solid technical resistance at the October high of $17.59an ounce. The next downside price breakout objective for the bears is closingprices below solid support at the October low of $16.435. First resistance isseen at $17.32 and then at this week's high of $17.45. Next support is seen attoday's low of $16.955 and then at the overnight low of $16.80. Wyckoff'sMarket Rating: 6.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com 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.

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