Gold, silver prices continue to grind lower
(Kitco News) Gold and silver prices are modestly down in midday U.S. trading Tuesday. The precious metals bulls are trying, and with little success so far, to stabilize their markets after recent strong selling pressure has drove prices to three-month today. December gold futures were last down $2.40 an ounce at 1,454.70. December Comex silver prices were last down $0.097 at $16.71 an ounce.
President Trump was giving a speech to the New York Economic Club as of this writing. Traders and investors are hoping he will provide some fresh insight on the U.S.-China trade front.
Asian and European stock indexes were mostly up overnight. U.S. stock indexes are firmer at midday and poked to new record highs again. Trader and investor funds continue to flow into equities at the expense of the safe-haven metals.
The civil unrest in Hong Kong has escalated in recent days. Some reports are saying the city is now on the verge of shutting down. One protester was shot by police over the weekend and another man was set on fire by protesters. This situation could flare up into a major geopolitical event very quickly if mainland China gets more involved in the matter.
The key “outside markets” today see the U.S. dollar index modestly higher. Nymex crude oil prices are slightly firmer and trading around $57.00 a barrel. A U.S. Energy Department official said U.S. shale oil production will reach 13 million barrels per day in December.
Technically, December gold futures prices were nearer the session high at midday today. The bears have the overall near-term technical advantage and have momentum as prices have been trending lower for two months. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,425.00. First resistance is seen at this week’s high of $1,477.40 and then at $1,475.00. First support is seen at today’s low of $1,446.20 and then at $1,440.00. Wyckoff's Market Rating: 4.0
December silver futures prices were nearer the session low at midday and hit another three-month low today. The silver bears have the overall near-term technical advantage. Prices have been trending lower for two months. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at $17.10. Next support is seen at today’s low of $16.615 and then at $16.50. Wyckoff's Market Rating: 4.0.
December N.Y. copper closed down 140 points at 265.00 cents today. Prices closed nearer the session low today on more profit taking from recent gains. The copper bulls have the slight overall near-term technical advantage as prices have been trending up for six weeks. But the bulls need to show fresh power soon to keep the uptrend alive. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 280.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at this week’s high of 269.00 cents and then at last week’s high of 273.00 cents. First support is seen at 262.80 cents and then at 260.00 cents. Wyckoff's Market Rating: 5.5.