Gold Sees Mild Corrective Pullback After Big Gains Wed.

(Kitco News) - Goldprices were ending the U.S. day session modestly lower Thursday, on a minordownside correction from the strong gains seen Wednesday. Still, the gold bullsthis week have gained technical power to suggest more upside price action islikely in the near term. April Comex gold futures were last down $3.40 an ounceat $1,354.60. March Comex silver was last down $0.088 at $16.79 an ounce.

Thursdaymorning’s release of the January U.S. producer price index report showed a riseof 0.4% from December, with the “core” reading also up a “hot” 0.4%. TheJanuary PPI was forecast to come in at up 0.4% from December on the headlinenumber, and up 0.2% excluding food and energy, or the core. Metals and othermarkets moved little on the news, after seeing volatility in the aftermath ofWednesday’s hotter-than-expected consumer price index report.

Abatch of other U.S. economic data released Thursday showed a mixed bag and hadvery little impact on the marketplace.

Globalstock markets were mostly higher Thursday. The U.S. stock market was also up inearly afternoon dealings. China and South Korean markets were closed Thursdayfor the Lunar New Year holiday.

Thekey outside markets on Thursday saw the U.S. dollar index lower again. Thegreenback is taking a beating this week and the USDX is now back close to themulti-year low scored in January. The weak dollar limited selling pressure onthe metals today. Meantime, Nymex crude oil prices are higher in earlyafternoon trading, and just above $61.00 a barrel.

Technically,April gold futures prices closed the day session near mid-range and saw acorrective pullback from Wednesday’s big gains. The gold bulls have the firmoverall near-term technical advantage. Gold bulls' next upside near-term pricebreakout objective is to produce a close above solid technical resistance atthe January high of $1,370.50. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,320.00. Firstresistance is seen at today’s high of $1,359.80 and then at $1,370.50. Firstsupport is seen at $1,350.00 and then at $1,340.00. Wyckoff's Market Rating:7.0

Marchsilver futures prices closed near mid-range today. The silver bears have theslight overall near-term technical advantage. Silver bulls' next upside pricebreakout objective is closing prices above solid technical resistance at $17.00an ounce. The next downside price breakout objective for the bears is closingprices below solid support at $16.00. First resistance is seen at today’s highof $16.95 and then at $17.00. Next support is seen at today’s low of $16.605and then at $16.50. Wyckoff's Market Rating: 4.5.

March N.Y. copper closed up 80 points at 324.35 cents today. Prices closed near thesession high. The copper bulls have the overall near-term technical advantageand have gained power this week. Copper bulls' next upside price objective ispushing and closing prices above solid technical resistance at the Decemberhigh of 323.65 cents. The next downside price objective for the bears isclosing prices below solid technical support at the February low of 302.60cents. First resistance is seen at 325.75 cents and then at 327.90 cents. Firstsupport is seen at today’s low of 321.25 cents and then at 318.00 cents.Wyckoff's Market Rating: 7.0.

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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