Gold, Silver Prices Back Off On Bearish Outside Markets

(Kitco News) - Gold and silver markets ended the U.S. day session solidly lower Monday, pressuredby a firmer U.S. dollar index and lower crude oil prices. Such prompted someprofit-taking from the shorter-term futures traders after both metals last weekhit 4.5-month highs. February Comex gold futures were last down $12.20 an ounceat $1,339.80. March Comex silver was last down $0.301 at $17.14 an ounce.

Therewere no significant, markets-moving news events to start the trading week.World stock markets were mixed today.

Afeature in the marketplace recently is rising world bond market yields. Thatmeans rising interest rates and rising inflationary pressures. U.S. Treasurybonds and notes dropped to new contract lows in prices today. History showsthat problematic inflation has favored hard assets like the precious metals.

Thisis a busy events week for the marketplace. Tuesday evening President Trumpdelivers his state-of-the-union speech Tuesday night. The Federal Open MarketCommittee (FOMC) meets Tuesday and Wednesday, which will be Fed Chair JanetYellen's last meeting. And on Friday the monthly U.S. employment situationreport from the Labor Department is due out.

U.S.economic data released Monday was light and include personal income andoutlays, and the Texas manufacturing outlook survey. Those reports had nosignificant impact on the markets.

Technically,Februarygold futures prices closed the day session nearer the session low. Thegold bulls still have the overall near-term technical advantage, amid asix-week-old uptrend in place on the daily bar chart. Gold bulls' next upsidenear-term price breakout objective is to produce a close above solid technicalresistance at the September high of $1,365.80. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at$1,325.00. First resistance is seen at today's high of $1,351.40 and then at$1,356.00. First support is seen at today's low of $1,336.10 and then at$1,330.00. Wyckoff's Market Rating: 6.5

Marchsilver futures prices closed nearer the session low today. The silver bullshave the overall near-term technical advantage. Silver bulls' next upside pricebreakout objective is closing prices above solid technical resistance at $18.00an ounce. The next downside price breakout objective for the bears is closingprices below solid support at the January low of $16.735. First resistance isseen at today's high of $17.47 and then at the January high of $17.705. Nextsupport is seen at today's low of $17.115 and then at $17.00. Wyckoff's MarketRating: 6.0.

March N.Y. copper closed down 20 points at 319.70 cents today. Prices closed nearerthe session low. The copper bulls have the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the December high of 332.20 cents.The next downside price objective for the bears is closing prices below solidtechnical support at this week's low of 310.80 cents. First resistance is seenat today's high of 323.55 cents and then at last week's high of 325.80 cents.First support is seen at 317.75 cents and then at 315.00 cents. Wyckoff'sMarket Rating: 7.0.

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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