Gold Sees Only Slight Gains As U.S. Stock Market Tumbles
(Kitco News) - Gold prices are just slightly up in early-afternoon U.S. trading Wednesday. The safe-haven metal got little benefit from a steep sell off in the U.S. stock market today. The weaker U.S. dollar on the foreign exchange market on this day also worked in favor of the precious metals market bulls. December gold futures were last up $1.50 an ounce at $1,192.90. December Comex silver was last down $0.075 at $14.325 an ounce.
Rising world government bond yields are still a worry to the marketplace, what with its implications on rising inflation and negative impact on global stock markets.
The key U.S. data point today was is the producer price index report for September, which came in at up 0.2%. The excluding food and energy reading was also up 0.2%. Those numbers were right in line with market expectations and markets did not show a significant reaction to the inflation report.
The markets appeared to take in stride another admonishment to the Federal Reserve from President Trump. Trump Tuesday afternoon said the Fed is acting too quickly on raising interest rates, given the low inflationary pressures at present.
The outside markets today find the U.S. dollar index weaker on a corrective pullback after hitting a six-week high earlier this week. Meantime, November Nymex crude oil prices are solidly lower and trading just above $73.00 a barrel.
Technically, the gold 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 $1,200.00 and then at this week’s high of $1,208.00. First support is seen at this week’s low of $1,186.00 and then at the September low of $1,184.30. Wyckoff's Market Rating: 2.0
The 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 $14.195 and then at $14.00. Wyckoff's Market Rating: 2.0.
December N.Y. copper closed down 250 points at 278.15 cents today. Prices closed nearer the session high today. The copper bears 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 today’s high of 282.00 cents and then at 285.00 cents. First support is seen at today’s low of 277.20 cents and then at 275.00 cents. Wyckoff's Market Rating: 3.0.