Gold, Silver Prices Pull Back as Global Stock Markets Rally
(Kitco News) - Gold and silver prices are lower in midday U.S. trading Monday, as trader and investor risk appetite has up-ticked markedly to start the trading week. However, prices of both metals have moved well up from their daily lows. December gold futures were last down $11.30 an ounce at 1,512.30. September Comex silver prices were last down $0.147 at $16.98 an ounce.
Bull markets, even the strong ones, don’t see prices go up every day. In fact, corrective chart consolidation is healthy and suggests the uptrend can be sustained.
Global stock markets were higher Monday and U.S. stock indexes were solidly higher in early afternoon New York trading. There were no major geopolitical developments over the weekend, and the civil unrest in Hong Kong did not escalate, as many had feared.
Upbeat comments about the U.S. economy from President Trump and his economic officials over the weekend, namely saying there is no recession on the horizon, is also boosting investor confidence.
Weekend news China plans to further stimulate its economy with interest rate reforms has combined with news late last week that the European Central Bank plans further monetary policy stimulus in September has brightened the world marketplace.
Safe-haven assets U.S. Treasuries are also under selling pressure. The U.S. Treasury market yield curve is no longer inverted after briefly becoming so last week.
The key “outside markets” today see Nymex crude oil prices higher and trading around $55.75 a barrel. The U.S. dollar index is modestly higher.
Later this week the annual Jackson Hole, Wyoming Federal Reserve confab that sees central banks of the world attending will be closely monitored by the marketplace.
There was no major U.S. economic data due released Monday.
Technically, December gold futures prices closed near mid-range today. The bulls still have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. There are still no significant, early chart clues to suggest a market top is close at hand. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,546.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,488.90. First resistance is seen at today’s high of $1,523.60 and then at $1,530.00. First support is seen at today’s low of $1,503.30 and then at $1,500.00. Wyckoff's Market Rating: 7.5
September silver futures prices closed near mid-range today. The silver bulls have the solid overall near-term technical advantage. An 11-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the August high of $17.49 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.51. First resistance is seen at today’s high of $17.175 and then at $17.315. Next support is seen at today’s low of $16.82 and then at $16.685. Wyckoff's Market Rating: 7.5.
September N.Y. copper closed up 70 points at 260.20 cents today. Prices closed near mid-range. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 275.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at last week’s high of 263.80 cents and then at 265.00 cents. First support is seen last week’s low of 256.70 cents and then at the August low of 253.15 cents. Wyckoff's Market Rating: 2.0.