Gold, Silver Prices Punished By Powerful U.S. Stock Market Rally
(Kitco News) - A strong rally in the U.S. stock market that propelled the stock indexes to record highs Thursday pushed gold and silver prices lower. The metals ended the futures day session at or near their lowest price levels of the month, on this last trading day of November. February Comex gold was last down $9.80 an ounce at $1,276.50. March Comex silver hit a 3.5-month low Thursday and was last down $0.096 at $16.465 an ounce.
The benchmark Dow Jones Industrial Average pushed above the 24,000 level for the first time ever Thursday. I was working on the floor of the Chicago Mercantile Exchange as a 25-year-old markets reporter when the Dow hit a then-record high of 1,300 back in 1985.
The soaring stock market in the U.S. and rallying bourses from around the world are keeping investor funds away from the safe-haven gold and silver markets.
The key “outside markets” Thursday saw the U.S. dollar index weaker in a two-sided trading session. Crude oil prices were near steady in afternoon trading. The OPEC oil cartel meeting in Vienna, Austria began Thursday to discuss extending its oil-production quotas. It was reported the cartel will continue with its current collective production quota.
Investors and traders are awaiting the end result of a U.S. tax-cut plan being pushed through Congress. The Senate is likely to vote on the tax legislation soon. It is not a clear-cut consensus that this bill will pass the Senate.
Technically, February gold futures prices closed nearer the session low and closed at a three-week low close today. The bulls have lost their slight overall near-term technical advantage. A gentle, four-week-old uptrend on the daily bar chart has been negated. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the November high of $1,303.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,267.00. First resistance is seen at $1,280.00 and then at today’s high of $1,288.40. First support is seen at today’s low of $1,273.10 and then at $1,268.10. Wyckoff's Market Rating: 5.0
March silver futures prices closed nearer the session low and hit a 3.5-month low today. Prices also closed at a bearish monthly low close today. The silver bears have the overall near-term technical advantage with this week’s steep price downdraft. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $16.295. First resistance is seen at today’s high of $16.625 and then at $16.85. Next support is seen at today’s low of $16.345 and then at $16.295. Wyckoff's Market Rating: 3.5.
March N.Y. copper closed up 15 points at 306.95 cents today. Prices closed near mid-range and hit a six-week low early on today. The copper bulls still have the overall near-term technical advantage, but are fading. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 320.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at Wednesday’s high of 311.25 cents and then at Tuesday’s high of 315.80 cents. First support is seen at today’s low of 305.10 cents and then at 302.50 cents. Wyckoff's Market Rating: 6.0.