Gold, Silver Prices Pull Back On Profit Taking

(Kitco News) - Gold and silver prices were ending the U.S. day session lower Thursday, on somenormal profit-taking pressure after both markets earlier this week hitmulti-month highs. February Comex gold was last down $10.10 an ounce at $1,329.10.March Comex silver was last down $0.171 at $16.995 an ounce.

Theprecious metals did not show much reaction to growing concerns in themarketplace regarding a potential U.S. government shutdown starting thisweekend. U.S. lawmakers cannot agree on a budget. This worry has limited buyinginterest in U.S. equities. An actual government shutdown would likely besupportive for the safe-haven gold market.

U.S.economic data released Thursday included the weekly jobless claims report, newresidential construction and the Philadelphia Fed business survey. The reportswere a mixed bag for the marketplace and did not significantly impact the markets.

Thekey outside markets on Thursday saw the U.S. dollar index slightly higher on acorrective bounce after hitting a 3.5-year low earlier this week. The greenbackbears still have the solid overall near-term technical advantage.

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

Technically,Februarygold futures prices closed near mid-range. The gold bulls still havethe overall near-term technical advantage, amid a five-week-old uptrend inplace on the daily bar chart. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at theSeptember high of $1,365.80. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,300.00. Firstresistance is seen at today's high of $1,333.30 and then at this week's high of$1,345.00. First support is seen at today's low of $1,323.30 and then at the$1,320.00. Wyckoff's Market Rating: 6.5

Marchsilver futures prices closed nearer the session low today. The bulls have theoverall near-term technical advantage. Prices are in a five-week-old uptrend onthe daily bar chart, but now just barely. Silver bulls' next upside pricebreakout objective is closing prices above solid technical resistance at theOctober high of $17.59 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the October low of $16.435.First resistance is seen at today's high of $17.14 and then at $17.32. Nextsupport is seen at this week's low of $16.80 and then at $16.60. Wyckoff'sMarket Rating: 6.0.

March N.Y. copper closed up 105 points at 319.95 cents today. Prices closed nearmid-range today. The copper bulls have the overall near-term technicaladvantage, but have faded a bit. Copper bulls' next upside price objective ispushing and closing prices above solid technical resistance at the Decemberhigh if 332.20 cents. The next downside price objective for the bears isclosing prices below solid technical support at 310.00 cents. First resistanceis seen at Wednesday's high of 322.10 cents and then at 325.00 cents. Firstsupport is seen at this week's low of 317.85 cents and then at 315.00 cents.Wyckoff's Market Rating: 6.5.

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.

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