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Gold, silver bulls work to keep price uptrends alive

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(Kitco News) - Gold and silver prices are steady to weaker in midday U.S. trading Thursday. Bulls in both metals have suffered a minor setback late this week and now they need to step up and show some fresh strength to keep their price uptrends on the charts alive. December gold futures were last up $0.30 an ounce at 1,512.60. December Comex silver prices were last down $0.178 at $17.89 an ounce.

Today’s report on the third estimate of second-quarter U.S. GDP came in at up 2.0%, which was unchanged from the last estimate and in line with market expectations. The markets showed little reaction to the news.

Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are weaker at midday. World markets were boosted by an apparent uptick in marketplace perceptions regarding a U.S.-China trade agreement occurring down the road. However, U.S. equities are feeling pressure from partisan politics in the U.S. Congress.

The up-and-down U.S.-China trade rhetoric is presently in “up” mode following positive comments on the matter from President Trump on Wednesday. Then on Thursday China’s Commerce Ministry said Chinese companies will buy “sizeable amounts” of U.S. soybeans and pork ahead of high-level trade discussions scheduled to take place in October. This has given the world marketplace a bit of a boost in risk appetite.

However, the positive news on the world trade front is being blunted by the U.S. House of Representatives considering impeaching Trump over what the House says are illegal comments Trump made to a Ukrainian official. The Trump administration on Wednesday released the transcript of his comments to the official, which is being spun by both Republicans and Democrats to each’s favor. The U.S. House members grilled the top U.S. national security official Thursday. Whether Trump actually gets impeached seems unlikely at this time. However, the inquiry by the House is very likely to bog down the U.S. government to a standstill on new legislation, and is likely to hurt Trump’s foreign policy agenda, including trade negotiations with China.

Upbeat economic data coming out of Germany also assuaged European investors late this week. A consumer sentiment report Thursday showed a higher reading in September than in August, and the September number was also higher than expected. Recent economic data coming out of Germany had been dour.

Nymex crude oil prices are weaker and trading around $56.00 a barrel. Oil bulls are fading badly. The other key outside market today sees the U.S. dollar index trading slightly higher and not far below the high for the year.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices were near mid-range in late trading. The bulls still have the firm overall near-term technical advantage amid a four-month-old uptrend still in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,566.20. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,490.70. First resistance is seen at today’s high of $1,519.50 and then at $1,525.00. First support is seen at today’s low of $1,507.10 and then at $1,500.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures closed down $0.128 at $17.95 today. Prices were near mid-range late today. The silver bulls have the overall near-term technical advantage. A four-month-old uptrend is still 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 the September low of $17.47. First resistance is seen at today’s high of $18.11 and then at $18.25. Next support is seen at today’s low of $17.785 and then at $17.58. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed down 345 points at 257.75 cents today. Prices closed near the session low and closed at a four-week-low close today. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 270.65 cents. The next downside price objective for the bears is closing prices below solid technical support at the September low of 248.20 cents. First resistance is seen at 260.00 cents and then at this week’s high of 262.35 cents. First support is seen at this week’s low of 257.25 cents and then at 255.00 cents. Wyckoff's Market Rating: 3.0.

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.