Gold down, hits 4-week low on chart selling, long liquidation

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(Kitco News) – Gold prices are down and hit a four-week low in midday U.S. trading Thursday. The near-term chart posture for the gold market is deteriorating now, and that has invited some technical-based sellers into the market. Also, weak-handed longs in the gold futures markets are being forced to liquidate their positions amid the recent sell off. A slumping crude oil market this week is also a negative for the metals markets. February gold was last down $17.20 at $1,767.30 and March Comex silver was last up $0.036 at $22.375 an ounce.

Global stock markets were mixed to weaker in overnight trading. The U.S. stock indexes are higher at midday—also a negative for safe-haven gold. The U.S. stock indexes have recovered some of their late-Wednesday losses that came after news that a case of Omicron was discovered in California. That news was not surprising but still rattled the stock market. Overnight news that the World Health Organization said vaccinations would offer at least some protection against the new strain helped assuage worries on the matter. Also, reports say Omicron is no more severe than the other coronavirus strains and may be milder. However, by no means has the marketplace reached calm on the matter. Don’t be surprised to see more markets volatility in the near term as more becomes known about Omicron.

The key “outside markets” see Nymex crude oil prices higher and trading around $66.50 a barrel, after hitting a three-month low of $62.43 today. The U.S. dollar index is slightly lower. Meantime, The yield on the U.S. Treasury 10-year note is presently fetching 1.456%.

The marketplace is awaiting the U.S. employment situation report for November from the Labor Department on Friday morning. The key non-farm payrolls figure is expected to come in at up 573,000 compared to a rise of 531,000 in October.

Technically, February gold futures prices hit a four-week low today. Bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. A two-month-old uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close above solid resistance at $1,820.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,761.00. First resistance is seen at today’s high of $1,785.20 and then at Wednesday’s high of $1,895.70. First support is seen at $1,761.00 and then at $1,750.00. Wyckoff’s Market Rating: 5.0

March silver futures bears have the firm overall near-term technical advantage. Prices are trending lower again on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.46. First resistance is seen at $22.75 and then at $23.00. Next support is seen at this week’s low of $22.185 and then at $22.00. Wyckoff’s Market Rating: 2.5.

March N.Y. copper closed up 590 points at 430.50 cents today. Prices closed near the session high today. The copper bears have the slight overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at this week’s high of 451.15 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 420.00 cents. First resistance is seen at Wednesday’s high of 435.15 cents and then at this week’s high of 438.15 cents. First support is seen at today’s low of 423.05 cents and then at the November low of 420.00 cents. Wyckoff’s Market Rating: 4.5.