Gold Prices See, Profit Taking, Technical Selling Pressure

(Kitco News) - Gold prices are modestly lower in early U.S. trading Monday. Some profit-taking andchart consolidation are featured, which is not unexpected after recent goodgains that pushed prices to a 3.5-month high last week. February Comex gold waslast down $3.50 an ounce at $1,318.80. March Comex silver was last down $0.13at $17.155 an ounce.

Worldstock markets were mixed to firmer in quieter dealings overnight. U.S. stockindexes are pointed toward narrowly mixed openings when the New York daysession begins. The U.S. indexes poked to new record highs overnight, which isa negative for the competing asset class of precious metals.

Therewere no major news developments over the weekend to significantly impact themarketplace.

Thekey outside markets on Monday morning see the U.S. dollar index solidly higheron a corrective bounce from recent selling pressure. The higher USDX today is abearish element for the precious metals markets. The greenback bears so stillhave the overall near-term technical advantage.

Meantime,Nymex crude oil prices are firmer and trading above $60.00 a barrel. Oil pricesare near the three-year highs hit last week. Rallying oil prices are a positivedevelopment for the raw commodity sector, including the metals.

U.S.economic data due for release Monday is light and includes the employmenttrends index and consumer installment credit.

Technically,Februarygold futures bulls have the overall near-term technical advantage.Prices are in a four-week-old uptrend on the daily bar chart. Bulls' nextupside technical objective is pushing and closing prices above chart resistanceat $1,350.00. Bears' next near-term downside price breakout objective isclosing prices below solid technical support at $1,300.00. First support isseen at today's low of $1,312.70 and then at $1,307.10. First resistance isseen at last week's high of $1,327.30 and then at $1,335.00. Wyckoff's MarketRating: 6.0

Marchsilver bulls have the overall near-term technical advantage. Prices are in a four-week-olduptrend on the daily bar chart. The next upside price breakout objective isclosing futures prices above solid technical resistance at the October high of $17.59an ounce. The next downside price breakout objective for the bears is closingprices below solid support at the October low of $16.435. First resistance isseen at last week's high of $17.32 and then at $17.50. Next support is seen at $17.00and then at $16.865. 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.

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