(Kitco News) - Gold prices ended the U.S. day session moderately lower in a quieter trading session Tuesday. An upbeat U.S. gross domestic product report that showed modest growth helped to pressure gold and silver markets. Bearish charts for the precious metals markets are also keeping the bears confident and in a selling mood. Trading conditions across the marketplace were quieter ahead of the Christmas holiday on Friday. February Comex gold was last down $7.20 at $1,073.40 an ounce. March Comex silver was last down $0.035 at $14.28 an ounce.
The second revision to third-quarter U.S. GDP was up 2.0%, year-on-year, which was a bit higher than expectations of a 1.9% increase. The initial 3Q GDP report showed a rise of 2.1%.
The key “outside markets” on Tuesday saw the U.S. dollar index weaker and Nymex crude oil prices modestly higher.
Other U.S. economic data released Tuesday included the Richmond Fed business survey, the U.S. house price index and existing home sales. None of the above had a significant impact on the precious metals markets.
Technically, February gold futures prices closed nearer the session low today. If there is good follow-through buying the rest of this week then a bullish double-bottom reversal pattern would form on the daily bar chart, which would be an early clue that a market bottom is in place. But right now the gold bears have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the December high of $1,088.30. Bears' next near-term downside price breakout objective is pushing prices below solid longer-term technical support at the contract low of 1,045.40. First resistance is seen at this week’s high of $1,081.40 and then at $1,088.30. First support is seen at $1,070.00 and then at this week’s low of $1,063.10. Wyckoff’s Market Rating: 2.0
March silver futures prices closed near mid-range and did hit a two-week high early on today. The silver market bears still have the firm overall near-term technical advantage. However, sideways to higher price action this week would begin to suggest a market bottom is in place. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the December high of $14.64 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the contract low of $13.64. First resistance is seen at today’s high of $14.40 and then at $14.50. Next support is seen at today’s low of $14.215 and then at this week’s low of $14.045. Wyckoff's Market Rating: 2.0.
March N.Y. copper closed down 310 points at 210.90 cents today. Prices closed nearer the session low today. Sideways to higher price action the rest of this week would begin to suggest a market bottom is in place. But right now the copper bears have the solid overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 200.00 cents. First resistance is seen at this week’s high of 214.40 cents and then at 215.00 cents. First support is seen at this week’s low of 210.20 cents and then at 208.00 cents. Wyckoff's Market Rating: 2.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
