Gold Prices Slightly Down Amid Chart Consolidation

(Kitco News) - Gold prices are modestly lower in early U.S. trading Monday. Some backing andfilling on the charts is featured following recent price gains that pushed goldto a four-month high. February Comex gold was last down $1.70 an ounce at $1,331.40.March Comex silver was last down $0.111 at $17.025 an ounce.

TheU.S. government remains shut down for the third day, as U.S. lawmakers cannotagree on a budget and President Trump seems content to let the government stayclosed. The situation has not had a major impact on the world marketplace, buthas somewhat limited buying interest in U.S. equities and have pressured theU.S. dollar in the foreign exchange market.

Focusof the marketplace this week is also on Davos, Switzerland and its WorldEconomic Forum. World government officials, corporate heads and othercelebrities will be at the yearly event to discuss economics and ways to makethe world better. The highlight of the event will be a speech by U.S. PresidentTrump.

Thekey outside markets on Monday morning see the U.S. dollar index slightly lower.Prices are hovering near last week's 3.5-year low. Meantime, Nymex crude oil prices are also slightly lower after hitting a nearly four-year high last week.

U.S.economic data due for release Monday is light and includes the Chicago Fednational activity index.

Technically,Februarygold futures bulls have the overall near-term technical advantage.Prices are in a six-week-old uptrend on the daily bar chart. Bulls' next upsidetechnical objective is pushing and closing prices above chart resistance at theSeptember high of $1,365.80. Bears' next near-term downside price breakoutobjective is closing prices below solid technical support at $1,300.00. First supportis seen at last week's low of $1,324.30 and then at $1,320.00. First resistanceis seen at Friday's high of $1,338.20 and then at this week's high of $1,345.00.Wyckoff's Market Rating: 6.5

Marchsilver bulls have the slight overall near-term technical advantage, amid recentsideways trading. The next upside price breakout objective is closing futuresprices above solid technical resistance at the October high of $17.59 an ounce.The next downside price breakout objective for the bears is closing pricesbelow solid support at the October low of $16.435. First resistance is seen at$17.14 and then at $17.32. Next support is seen at last week's low of $16.80and then at $16.50. Wyckoff's Market Rating: 5.5.

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.

Big Gold has another strong quarter, but some signs growth cooling

Gold stocks nearly regain highs on rising metal price

Gold stocks down as risk on move continues

Mixed outlook for resources on new Canadian government

Gold's Bull Market Pullbacks