Gold, Silver Prices Pressured By Bounce In U.S. Dollar

(Kitco News) - Gold and silver markets are moderately lower in early U.S. trading Monday. A firmerU.S. dollar index has prompted some more profit-taking from the shorter-termfutures traders after both markets last week hit 4.5-month highs. February Comex gold futures were last down $10.60 an ounce at $1,341.50. March Comex silver was last down $0.176 at $17.265 an ounce.

Therewere no significant, markets-moving news events during the weekend to impactthe marketplace. World stock markets were mixed overnight. U.S. stock indexesare pointed toward lower openings when the New York day session begins.

Afeature in the marketplace recently are 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.

Thekey “outside markets” are in a bearish posture for the precious metals to startthe trading week. The U.S. dollar index is higher on a corrective rebound afterhitting a 3.5-year low last week. Meantime, Nymex crude oil prices are modestlylower and trading above $65.00 a barrel, on a corrective pullback after lastweek’s more-than-three-year high. A rising U.S. oil rig count, reported Friday,is also bearish for oil.

U.S.economic data due for release Monday includes personal income and outlays, theTexas manufacturing outlook survey.

Technically,Februarygold futures bulls still have the firm overall near-term technical advantage.Prices are still in a six-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 $1,320.00.First support is seen at today’s low of $1,339.50 and then at $1,335.00. First resistanceis seen at today’s high of $1,351.40 and then at $1,356.00. Wyckoff’s MarketRating: 6.5

Marchsilver bulls have the overall near-term technical advantage. A choppy,six-week-old price uptrend is in place on the daily bar chart. The next upsideprice breakout objective is closing futures prices above solid technicalresistance at $18.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the January low of $16.735. Firstresistance is seen at today’s high of $17.47 and then at $17.59. Next supportis today’s low of $17.24 and then at $17.00. Wyckoff's Market 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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