Gold, Silver Prices See Mild Pressure From Stable USDX, Rally in U.S. Stocks
(Kitco News) - Gold prices are modestly down, while silver is just slightly lower, in early-afternoon U.S. trading Tuesday. The U.S. dollar index has moved up from its daily lows at midday, while the U.S. stock market is in rally mode, to put mild selling pressure on the two precious metals markets. December gold futures were last down $2.20 an ounce at $1,203.50. December Comex silver was last down $0.018 at $14.205 an ounce.
World stock markets were also mostly higher overnight, to underscore the lack of risk aversion in the global marketplace at present. That’s bearish for the safe-haven gold and silver markets. Stock market bulls point out that we are now more than half way through what can be the historically turbulent month of September with no significant speed bumps yet encountered.
The marketplace today did not show a reaction to the news Monday afternoon that President Trump will slap another $200 billion in tariffs against China, to which China vowed to retaliate, and to which Trump said he would retaliate to the retaliation. Reports said the world’s two largest economies still plan to hold trade talks later this month. Some market watchers reckon the two sides will come to an agreement despite all the bluster.
The other key outside market today finds Nymex crude oil prices higher and trading just below $70.00 a barrel. Stiff chart resistance above the market has capped gains, and will likely continue to do so.
Technically, December gold futures bears still have the overall near-term technical advantage. However, prices have been trading sideways for three two weeks, which suggests a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,220.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at this week’s high of $1,209.70 and then at last week’s high of $1,218.00. First support is seen at $1,200.00 and then at this week’s low of $1,197.50. Wyckoff's Market Rating: 3.0
December silver futures bears have the solid overall near-term technical advantage. There are no early clues to suggest a market bottom is close at hand. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.07 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at last week’s high of $14.39 and then at $14.50. Next support is seen at this week’s low of $14.065 and then at last week’s low of $13.965. Wyckoff's Market Rating: 1.5.
December N.Y. copper closed up 810 points at 273.15 cents today. Prices closed nearer the session high today and scored a big and bullish “outside day” up on the daily bar chart. Heavy short covering and bargain hunting were featured. The copper bears still have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 283.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at today’s high of 273.75 cents and then at 276.65 cents. First support is seen at 270.00 cents and then at 265.00 cents. Wyckoff's Market Rating: 3.0.