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Gold, silver bulls showing resilience

Kitco News

(Kitco News) - Gold and silver prices are modestly up in midday U.S. trading Tuesday. The gold and silver market bulls can correctly argue their metals have been fairly resilient amid the record-setting run in the U.S. stock market that saw new record highs again today. While the metals have eroded from their late-summer highs, they have not seen dramatic declines that one might expect when a competing asset class is setting record highs. December gold futures were last up $3.10 an ounce at 1,475.00. December Comex silver prices were last up $0.12 at $17.12 an ounce.

Focus of traders and investors is turning more to the civil unrest in Hong Kong, which is becoming more widespread and violent, and is bearish for Asian stock markets. Also, it appears mainland China government officials and Hong Kong officials are becoming more at odds on dealing with the protesting. Hong Kong has been a major business hub for years, but the protests in the streets are making the world’s businesses leery of dealing in Hong Kong. If this situation deteriorates much further, it would likely boost the safe-haven metals.

In other news Tuesday, China’s central bank slightly lowered its short-term repo rate Tuesday, and the People’s Bank of China governor said he will continue to work to lower real lending rates, as the government continues to work to stem the negative economic effects of its trade war with the U.S. Easier monetary policy in China should work to foster more demand for commodities, including metals.

More details emerged overnight regarding President Trump’s meeting with Fed Chairman Powell on Monday morning. Trump late Monday tweeted that he told Powell U.S. interest rates are too high and that U.S. rates should be “lower than all others.” Trump in his tweet also said the U.S. dollar is too strong. This arm-twisting by Trump, who is ostensibly Powell’s boss, cannot help but influence Powell, if even just a bit, many market watchers believe. Such a scenario is also bullish for the metals markets.

The key “outside markets” today see the U.S. dollar index near steady. Nymex crude oil prices are lower and trading around $55.50 a barrel.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices were nearer the session high at midday today. The bears still have the slight overall near-term technical advantage as prices have been trending lower for 2.5 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 $1,480.00 and then at $1,490.00. First support is seen at today’s low of $1,465.10 and then at Monday’s low of $1,456.60. Wyckoff's Market Rating: 4.5.

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices were nearer the session high at midday today. The silver bears still have the overall near-term technical advantage. Prices have been trending lower for 2.5 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 $16.50. First resistance is seen at $17.25 and then at $17.50. Next support is seen at today’s low of $16.935 and then at the November low of $16.615. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed up 415 points at 266.15 cents today. Prices closed near the session high today. The copper bulls and bears are back on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 273.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 255.00 cents. First resistance is seen at 267.50 cents and then at 270.00 cents. First support is seen at 263.50 cents and then at last week’s low of 261.30 cents. Wyckoff's Market Rating: 5.0.

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.