Gold Sees Slight Gains From Sliding USDX
(Kitco News) - Gold prices are modestly higher in early-afternoon U.S. trading Thursday. A sharply lower U.S. dollar index that dropped to a 2.5-month low today only gave mild support to the precious metals markets. Risk-on trader and investor attitudes in the world marketplace, as evidenced by record highs scored in the major U.S. stock indexes today, continue to squelch buyers of the safe-haven metals. December gold futures were last up $3.20 an ounce at $1,211.50. December Comex silver was last up $0.04 at $14.32 an ounce.
December palladium futures on Thursday scored an eight-month high of $1,047.50 as of midday. The palladium bulls have the solid near-term technical advantage to suggest still more gains in the near term, including a likely challenge soon of the all-time high of $1,111.15 scored in January of this year. Fundamentally, reports say the sharp gains in palladium recently are mainly due to stockpiling of the precious metal by China due to a trade war with the U.S. and its associated uncertainties going forward, and because China is likely to ramp up its vehicle production in the coming years.
World stock markets were mixed to firmer overnight. It’s been a quieter week on the fundamental news front, with the ongoing U.S.-China trade war the main focus. However, traders and investors are fatigued with that news and the markets are reacting less and less to the latest salvos.
The other key outside market today finds Nymex crude oil prices slightly down and trading just below $71.00 a barrel. Around present price levels crude oil rallies have been capped several times this year.
Technically, the gold bears still have the overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart, 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 in December futures. 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 last week’s high of $1,218.00 and then at $1,220.70. First support is seen at today’s low of $1,205.10 and then at $1,200.00. Wyckoff's Market Rating: 3.0
The silver bears still have the solid overall near-term technical advantage. There are still no strong, 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: 2.0.
December N.Y. copper closed up 130 points at 274.25 cents today. Prices closed near the session high today and closed at a three-week high close. The copper bears still have the overall near-term technical advantage, but more price gains Friday would begin to suggest a market bottom is in place. 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 this week’s high of 275.35 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.