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(Kitco News) – Gold prices are modestly down in midday US trading Monday, on a normal pause and mild profit taking after hitting an eight-month high late last week. Silver bulls are fading, however, as prices hit a five-week low today and the near-term technical posture is deteriorating. February gold was last down $4.40 at $1,923.90 and March silver was down $0.57 at $23,365.
Global stock markets were mixed but mostly up overnight. US stock indexes are higher at midday.
In overnight news, a Wall Street Journal headline reads, “Fed sets milder course on rate increases.” Reporter Nick Timiraos said Fed officials are to slow interest rate increases at upcoming FOMC meetings and debate how much higher to raise them after gaining more confidence inflation will ease further this year. Timiraos is said to have an inside edge on getting high-level Fed officials to speak directly with him.
The key outside markets today see the US dollar index slightly higher. Nymex crude oil futures prices are modestly higher and trading around $82.25 a barrel. Meanwhile, the yield on the benchmark US 10-year Treasury note is currently fetching 3.53%.
Technically, February gold futures prices hit a nine-month high last Friday. Bulls have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,950.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,870.00. First resistance is seen at last week’s high of $1,939.00 and then at $1,950.00. First support is seen at today’s low of $1,912.50 and then at $1,900.00. Wyckoff’s Market Rating: 8.0
March silver futures prices hit a five-week low today. The silver bulls have the overall near-term technical advantage but are fading. A four-month-old uptrend on the daily bar chart has been negated. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the January high of $24,775. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $24.00 and then at today’s high of $24,295. Next support is seen at today’s low of $22.845 and then at $22.00. Wyckoff’s Market Rating: 6.0.
March NY copper closed up 55 points at 425.80 cents today. Prices closed near mid-range today. Prices last week hit a 6.5-month high. The copper bulls have the solid overall near-term technical advantage. A 3.5-month-old uptrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at today’s high of 430.25 cents and then at the January high of 435.50 cents. First support is seen at 420.00 cents and then at 416.80 cents. Wyckoff’s Market Rating: 7.5.
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