Gold, Silver Prices Firmer On Short Covering, Bargain Buying
(Kitco News) - Gold and silver prices are modestly up in early-afternoon U.S. trading Tuesday. Some mild short covering in the futures markets and bottom-fishing in the cash markets were featured in both metals today, following Monday’s solid losses. The U.S. dollar index by midday had backed well down from its early-morning six-week high, which also worked in favor of the precious metals market bulls. December gold futures were last up $2.90 an ounce at $1,191.50. December Comex silver was last up $0.081 at $14.41 an ounce.
Gold prices upticked a bit at mid-morning on the surprising news that U.S. United Nations Ambassador Nikki Haley is resigning. However, her resignation was apparently not due to differences with the Trump administration and the initial marketplace uncertainty on the matter quickly dissipated.
Global stock markets were mixed today. There are early chart clues the U.S. stock indexes have put in at least near-term market tops, if not major tops. If such is indeed the case it would be bullish for the competing asset class of precious metals.
World equity markets are still unnerved by rising government bond yields that are pulling investor interest away from stocks. The benchmark U.S. 10-year Treasury note on Tuesday hit a yield of 3.25%, which is a 7.5-year high.
The world’s two largest economies are continuing to escalate their trade war that has also now turned into a war of words. The U.S. secretary of state and Chinese foreign minister exchanged harsh words on Monday.
The International Monetary Fund on Monday lowered its world economic growth forecasts due to the U.S.-China trade war and the presently shaky secondary world currency markets. This week, the Chinese yuan is in focus as it continues to depreciate against the U.S. dollar even as Chinese monetary officials work to stem the yuan’s slide.
The other key outside market today finds November Nymex crude oil prices higher and trading just below $75.00 a barrel.
Technically, December gold futures bears still have the solid overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,220.70. 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 today’s high of $1,195.80 and then at $1,200.00. First support is seen at the September low of $1,184.30 and then at $1,180.00. Wyckoff's Market Rating: 2.0
December silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $14.95 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at $14.50 and then at this week’s high of $14.70. Next support is seen at today’s low of $14.285 and then at $14.195. Wyckoff's Market Rating: 2.0.
December N.Y. copper closed up 425 points at 280.95 cents today. Prices closed near the session high today. 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 290.00 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 282.50 cents and then at 285.00 cents. First support is seen at 277.50 cents and then at 275.00 cents. Wyckoff's Market Rating: 3.5.