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Gold, silver wilt as U.S. stock market rallies

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(Kitco News) -  Gold and silver prices are down and nearer their daily lows in midday U.S. trading Thursday. Risk aversion is not keen late this week, which is not working in favor the safe-haven metals. December gold futures were last down $12.10 an ounce at 1,500.60. December Comex silver prices were last down $0.225 at $17.585 an ounce.

The latest word coming from the trade talks between the U.S. and China that are taking place in Washington, D.C. is upbeat. Reports said President Trump will meet with the Chinese vice premiere on Friday to discuss trade. Trump tweeted today that China wants a deal. Global stock markets that were still open were supported on news the world’s two largest economies may reach an agreement. Many were surprised that China trade officials even showed up for the negotiations after the U.S. hit China with new sanctions earlier this week. Still, as has been the case for many months, the trade talks are very fluid and another tweet from President Trump could change the whole tenor of the situation.

The U.S. data point of the day was the consumer price index report for September, which came out unchanged from August and up 1.7%, year-on-year. The figure was expected to come in up 0.1% on the month and up 1.8%, on the year. Markets were little moved on the news.

Nymex crude oil prices are firmer and trading around $53.25 a barrel today. The other key “outside market” sees the U.S. dollar index solidly down in midday U.S. trading.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices were nearer the session low at midday today and scored a bearish “outside day” down on the daily bar chart. The bulls still have the overall near-term technical advantage but a four-week-old downtrend is 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 late-September high of $1,543.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,510.00 and then at today’s high of $1,522.30. First support is seen at this week’s low of $1,492.10 and then at $1,490.00. Wyckoff's Market Rating: 6.5.

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices were nearer the session low at midday today. The silver bulls have the overall near-term technical advantage. However, a four-week-old downtrend is still in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.94. First resistance is seen at this week’s of $18.00 and then at $18.25. Next support is seen at this week’s low of $17.305 and then at $17.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 460 points at 261.35 cents today. Prices closed near the session high and scored a bullish “outside day” up on the daily bar chart. 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 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 today’s high of 262.00 cents and then at 265.00 cents. First support is seen at 260.00 cents and then at 257.50 cents. Wyckoff's Market Rating: 3.0.

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