(Kitco News) - Comex February gold futures prices on Thursday ended the U.S. day session moderately lower and saw a corrective pullback from Wednesday's big gains. The market is also pausing and consolidating this week's good gains. A generally lower raw commodity sector Thursday also limited buying interest in the precious metals. February gold last traded down $10.10 at $1,740.20 an ounce. Spot gold last traded down $13.50 an ounce at $1,736.50. March Comex silver last traded down $0.069 at $32.735 an ounce.
Some weak economic data coming out of China Thursday acted as a bearish weight on the raw commodity sector, including gold and silver. The commodities were generally supported on Wednesday by the unexpected move by the major world central banks to pump liquidity into the world financial system. China on Wednesday also announced it was also lowering its reserve requirement ratio for banks, which in effect also eased China's monetary policy. Both are still overall bullish for the raw commodity sector as the specter of inflation and a weakening of the U.S. dollar both were ratcheted up a notch.
The U.S. dollar index traded slightly lower Thursday as the greenback bulls are fading a bit and need to show fresh power soon to keep the uptrend in place on the daily chart. The dollar index bulls do still have the overall near-term technical advantage. Crude oil prices traded modestly lower Thursday and that was a drag on the commodity sector. However, crude oil bulls have gained upside technical momentum this week.
The big economic report of the week is Friday morning's U.S. jobs report. The key non-farm payrolls figure is forecast to be up 125,000 in November, while the unemployment rate is expected at 9%, which is unchanged from last month. Any surprise numbers out of the jobs report is likely to move the financial markets and also the precious metals.
The London P.M. gold fixing was $1,752.00 versus the previous P.M. fixing of $1,746.00.
Technically, February gold futures prices closed nearer the session low Thursday and saw a corrective pullback from recent gains. Bulls have the overall near-term technical advantage. A nine-week-old uptrend is in place on the daily bar chart. Bulls' next upside technical breakout objective is to produce a close above solid technical resistance at $1,775.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,700.00. First resistance is seen at Thursday's high of $1,758.00 and then at $1,775.00. First support is seen at $1,725.00 and then at $1,704.30. Wyckoff's Market Rating: 6.0.
March silver futures prices closed nearer the session low Thursday. Bulls this week have gained some upside near-term technical momentum. Bulls next upside price breakout objective is closing prices above solid technical resistance at $34.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of $30.74. First resistance is seen at $33.00 and then at today's high of $33.495. Next support is seen at Thursday's low of $32.53 and then at $32.00. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed down 325 points 354.30 cents Thursday. Prices closed nearer the session low and saw a corrective pullback from very strong gains posted on Wednesday. Bulls have gained upside near-term technical momentum to suggest a market low is in place. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the October high of 376.80 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at last week's low of 321.85 cents. First resistance is seen at 360.00 cents and then at this week's high of 363.50 cents. First support is seen at Thursday's low of 351.75 cents and then at 350.00 cents. Wyckoff's Market Rating: 5.5.
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By Jim Wyckoff of Kitco News; email@example.com