Gold Price Pulls Back Amid Record-Setting Day for U.S. Stock Market
San Francisco (Jan 25) Gold prices ended the U.S. day session lower Wednesday, as a “risk-on” trader and investor mentality has been prevalent in the world marketplace this week—evidenced by world stock markets that are on the rise and U.S. stock indexes hitting record highs on this day. Profit taking from recent gains was also featured in gold today, as prices on Tuesday hit a two-month high. February Comex gold was last down $13.60 an ounce at $1,197.20. March Comex silver was last down $0.205 at $16.985 an ounce.
World stock markets were higher Wednesday and the U.S. Dow Jones Industrial Average pushed above 20,000 for the first time ever. U.S. President Donald Trump said he would revive the U.S. economy when he was running for the office, and this week he is signing directives to fulfill that pledge, including rolling back regulations on business and signing a controversial oil-pipeline-construction directive.
The U.S. dollar index was lower Wednesday. The index Tuesday hit a six-week low. Recent selling pressure has produced early technical clues the dollar index has put in a market top. Dollar index prices have been trending lower for three weeks. This element is a bullish underlying situation for the raw commodity sector, including the precious metals.
The other key “outside market” on Wednesday afternoon saw Nymex crude oil prices trade near steady in choppy action. While, OPEC and Russian oil officials have said they are holding to their stated plans to reduce their collective crude oil output, that news has been factored into crude oil prices.
Technically, February gold futures prices closed nearer the session low. The gold bears now have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,225.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,175.00.
Source: KitcoNews
