Gold, Silver Succumb To Follow-Through Selling Pressure

(Kitco News) - Gold and silver markets could not hold modest early gains and were ending the U.S.day session weaker Tuesday, on some follow-through selling from Monday's losses.A weaker U.S. dollar index limited selling pressure in the metals. However, theUSDX was well up from its overnight low during the U.S. day session. Lowercrude oil prices today also weighed on the precious metals markets. April Comex gold futures were last down $3.50 an ounce at $1,341.50. March Comex silver waslast down $0.037 at $17.09 an ounce.

Asell-off in the U.S. stock markets did not benefit the safe-haven gold andsilver markets much today. World equities markets worldwide are worried aboutrising bond yields. The U.S. 10-year note rose to a more-than-three-year highyield Tuesday. However, if the global stock markets finally come off theirhighs in significant fashion, such would be bullish for the competing assetclass of gold and silver.

Thisis a busy events week for the marketplace. Tuesday evening President Trumpdelivers his state-of-the-union speech. The Federal Open Market Committee(FOMC) started its monetary policy meeting Tuesday morning and it endsWednesday afternoon. This will be Fed Chair Janet Yellen's last meeting. OnFriday the monthly U.S. employment situation report from the Labor Departmentis due out. That is arguably the most important U.S. economic data point of themonth.

Technically,Aprilgold futures prices closed the day session nearer the session low. Thegold bulls still have the overall near-term technical advantage, but need toshow fresh power soon to keep a six-week-old uptrend in place on the daily barchart. Gold bulls' next upside near-term price breakout objective is to producea close above solid technical resistance at the January high of $1,370.50.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,320.00. First resistance is seen at today's highof $1,352.50 and then at this week's high of $1,356.30. First support is seenat today's low of $1,337.50 and then at $1,330.00. Wyckoff's Market Rating: 6.5

March silver futures prices closed nearer the session low today. The silver bullshave the slight overall near-term technical advantage, but need to show freshpower soon to keep it. Silver bulls' next upside price breakout objective isclosing prices above solid technical resistance at $18.00 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at the January low of $16.735. First resistance is seen at today's highof $17.31 and then at this week's high of $17.47. Next support is seen at$17.00 and then at $16.80. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed down 60 points at 318.80 cents today. Prices closed nearerthe session high. The copper bulls have the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the December high of 332.20 cents.The next downside price objective for the bears is closing prices below solidtechnical support at the January low of 310.80 cents. First resistance is seenat today's high of 321.10 cents and then at this week's high of 323.55 cents.First support is seen at today's low of 315.20 cents and then at 312.50 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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