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Quieter day in marketplace prompts profit taking in gold

Kitco News

(Kitco News) - Gold prices are moderately lower in midday U.S. trading Wednesday, on some normal profit taking by the shorter-term futures traders. Meantime, the silver market is higher and hit a more-than-two-year high overnight. Both metals continue to see underlying support on worries about slowing global economic growth amid falling government bond yields that are encouraging traders and investors to seek out safe-haven precious metals. December gold futures were last down $4.70 an ounce at 1,547.10. December Comex silver prices were last up $0.127 at $18.425 an ounce.

There were no major news developments to move markets today. However, there are storm clouds on the marketplace horizon, including the lingering U.S.-China trade war, Brexit concerns, and weakening global economic growth.

The U.S. Treasury yield curve remains partially inverted at mid-week, as the 2-year note yield is above that of the 10-year note. The inversion is a sometimes harbinger of impending U.S. economic recession. The inverted curve is bullish for the safe-haven metals, if even for the fact that it’s psychologically scary for traders and investors.

The key “outside markets” today see Nymex crude oil prices up and trading around $55.75 a barrel. The U.S. dollar index is firmer.

Technically, December gold futures prices closed near mid-range today on profit taking. Prices Monday hit a 6.5-year high. The bulls have the strong overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. There are 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 $1,600.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,500.00. First resistance is seen at today’s high of $1,556.60 and then at this week’s high of $1,565.00. First support is seen at this week’s low of $1,534.80 and then at $1,523.00. Wyckoff's Market Rating: 8.0.

Live 24 hours gold chart [Kitco Inc.]

December silver futures prices closed near mid-range today. The silver bulls have the strong overall near-term technical advantage. A three-month-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 $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at this week’s low of $17.64. First resistance is seen at today’s high of $18.62 and then at $18.75. Next support is seen at today’s low of $18.17 and then at $18.00. Wyckoff's Market Rating: 8.5.

Live 24 hours silver chart [ Kitco Inc. ]

December N.Y. copper closed up 100 points at 256.30 cents today. Prices closed near mid-range. Prices Monday hit a 2.5-year low. 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 265.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 240.00 cents. First resistance is seen at this week’s high of 257.70 cents and then at 260.00 cents. First support is seen at 253.20 cents and then at this week’s low of 249.90 cents. Wyckoff's Market Rating: 1.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.