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Gold, silver see decent gains on technical buying

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(Kitco News) - Gold and silver prices are trading moderately up in midday U.S. dealings Thursday. Gold is poised to close back above the key $1,500 level for the first time in over two weeks. Some chart-based buying was featured today as this week’s price action has at least temporarily negated price downtrends on the daily bar charts for both metals. December gold futures were last up $7.60 an ounce at 1,503.30. December Comex silver prices were last up $0.20 at $17.78 an ounce.

U.S. economic data released this morning showed weekly jobless claims down 6,000, which was better than expected. Meantime, September durable goods orders came in worse-than-expected at down 1.1% versus expectations of down 0.8%. The markets showed little reaction to the news.

Asian and European stock indexes were mixed but mostly firmer overnight. U.S. stock indexes were mixed at midday. Focus in the U.S. stock market is on a heavy slate of corporate earnings reports this week.

The European Central Bank held its regular monetary policy meeting Thursday, which was the last one for outgoing ECB chief Mario Draghi. No major changes in ECB monetary policy were announced at this meeting.

The central bank of Indonesia cut its interest rates today, with Turkey expected to do the same today. The central banks of Sweden and Norway held their interest rates steady at meetings today.

The Euro zone October composite purchasing managers index (PMI) came out at 50.2, which was slightly below expectations. The manufacturing PMI in October was 45.7. A reading below 50.0 suggests contraction in the sector. Germany, the workhorse of the Euro zone economy, had a manufacturing PMI reading of 41.9 in October.

The key “outside markets” today find Nymex crude oil prices firmer in midday U.S. action today and trading around $56.40 a barrel. Meantime, the U.S. dollar index is up on a corrective bounce from recent selling pressure that drove the index to a nine-week low earlier this week. 

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices were nearer the session high at midday, hit a two-week high and scored a bullish “outside day” up on the daily bar chart today. The bulls have the overall near-term technical advantage and have almost negated a seven-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,525.00. 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 $1,520.00. First support is seen at $1,490.00 and then at this week’s low of $1,484.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices were nearer the session high at midday today, were poised to close at a two-week high close and scored a bullish “outside day” up on the daily bar chart today. The silver bulls have the overall near-term technical advantage. A seven-week-old downtrend line on the daily bar chart has been negated. 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 high of $17.895 and then at $18.00. Next support is seen at this week’s low of $17.44 and then at $17.33. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed down 30 points at 266.90 cents today. Prices closed near mid-range today and hit a five-week high early on. The copper bears still have the slight 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 254.00 cents. First resistance is seen at 268.00 cents and then at 270.65 cents. First support is seen at 265.00 cents and then at this week’s low of 261.45 cents. Wyckoff's Market Rating: 4.5.

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