Gold, Silver Weaker Amid Profit Taking, Chart Backing and Filling

(Kitco News) - Gold and silver prices were ending the U.S. day session slightly lower Monday. Somechart consolidation and mild profit taking from the shorter-term futurestraders were featured amid a lack of major, markets-moving news to start thetrading week. February Comex gold was last down $0.70 an ounce at $1,332.50.March Comex silver was last down $0.026 at $17.01 an ounce.

Whilethe U.S. government remained shut down for the third day Monday, U.S. lawmakersappeared to have reached a deal that would reopen the government. A House voteon the matter was expected Monday afternoon. The world marketplace saw alimited reaction to the U.S. government shutdown.

Focusof the marketplace this week is also on Davos, Switzerland and its WorldEconomic Forum. World government officials, corporate heads and othercelebrities and bigshots will be at the yearly event to discuss economics andways to make the world a better place. The highlight of the event was supposedto be a speech by U.S. President Trump. However, reports now say Trump may notmake the trip due to the government shutdown.

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

Technically,Februarygold futures prices closed near mid-range. The gold bulls still havethe overall near-term technical advantage, amid a six-week-old uptrend in placeon 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 last Friday's high of $1,338.20 and then at last week'shigh of $1,345.00. First support is seen at last week's low of $1,324.30 andthen at the $1,320.00. Wyckoff's Market Rating: 6.5

Marchsilver futures prices closed nearer the session low today. The bulls have theslight overall near-term technical advantage, amid recent choppy and sidewaystrading. Silver bulls' next upside price breakout objective is closing pricesabove solid technical resistance at the January high of $17.45 an ounce. Thenext downside price breakout objective for the bears is closing prices below solidsupport at the October low of $16.435. First resistance is seen at $17.14 andthen at $17.32. Next support is seen at last week's low of $16.80 and then at$16.60. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed up 115 points at 319.90 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 December highif 332.20 cents. The next downside price objective for the bears is closingprices below solid technical support at 310.00 cents. First resistance is seenat 323.40 cents and then at 326.00 cents. First support is seen at the Januarylow 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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