Gold, Silver See Some Profit-Taking After Recent Good Gains

(Kitco News) - Gold and silver markets have seen some profit-taking pressure from the shorter-termfutures traders after solid gains scored earlier this week. The metals did notshow a big reaction to the just-released U.S. GDP report that was a miss to thedownside. February Comex gold futures were last down $11.80 an ounce at $1,351.40.March Comex silver was last down $0.22 at $17.395 an ounce.

TheU.S. economic data point highlight of the week saw this morning's release ofthe fourth-quarter gross domestic product report come in at up 2.6%,year-on-year. The GDP number was forecast to come in at up 2.9%. While it was asignificant miss to the downside, markets did not show a big reaction to thelower-than-expected GDP number.

Themarketplace is still buzzing about comments from U.S. President Donald Trumpthat were aired by CNBC on Thursday afternoon. Trump said he ultimately wants astronger U.S. dollar. His remarks pressured gold and silver markets and brieflyroiled the currency markets. The U.S. dollar index popped on the news and othercurrencies backed way off their daily highs. However, the dollar-bullishcomments from Trump quickly wore off, as traders reckoned the slide in thedollar has been going on for some time now and nothing changed from Trump'scomments.

WhileTrump's dollar-bullish comments initiated the profit-taking pressure in goldand silver markets, it can also be argued those markets were already due for adownside correction after this week's good upside price action.

Trumpspoke this morning at the Davos World Economic Forum. His speech was be closelymonitored by the marketplace but did not have an impact on markets.

TheU.S. dollar index is lower in early U.S. trading Friday and not far above thisweek's 3.5-year low. Meantime, Nymex crude oil prices are slightly lower, above$65.00 a barrel, and not far below this week's more-than-three-year high.

OtherU.S. economic data due for release Friday includes the advance economicindicators report and durable goods orders.

Technically,Februarygold futures bulls still have the firm 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 $1,330.00. First supportis seen at today's low of $1,343.70 and then at $1,339.00. First resistance isseen at today's high of $1,356.80 and then at $1,365.80. Wyckoff's MarketRating: 6.5

Marchsilver bulls have the overall near-term technical advantage and have restarteda price uptrend on the daily bar chart. The next upside price breakoutobjective is closing futures prices above solid technical resistance at $18.00an ounce. The next downside price breakout objective for the bears is closingprices below solid support at $17.00. First resistance is seen at today's highof $17.53 and then at this week's high of $17.705. Next support is today's lowof $17.235 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.

Uranium volatility after Russia's US export restrictions

Gold stocks rebound on metal bounce and equity rise

Crypto market size continues to catch up with gold

Crypto stealing some of gold's thunder

Gold stocks drop on metal price decline