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Downside price pressure in gold, silver; bullish spark needed

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(Kitco News) - Gold and silver prices are weaker in early U.S. trading Wednesday. A rebound in the U.S. stock market overnight is a negative for the safe-haven metals. A strong bounce in the U.S. dollar index just recently is also bearish for the metals markets. Gold and silver bulls are in need of some fresh, bullish fundamental news, to jumpstart their stalled price uptrends. October gold futures were last down $9.80 at $1,925.30 and December Comex silver was last down $0.251 at $26.74 an ounce.

Global stock markets were mixed overnight. European shares were mostly up and Asian shares mostly down. The marketplace is presently shrugging off overnight news that AstraZeneca has halted its Covid-19 vaccine trials because one person in the trial contracted an unexplained illness. Temporarily halting such trials is not uncommon, experts said.

The other important outside market today sees Nymex crude oil prices higher and trading around $37.50, on a corrective bounce following sharp losses recently. The yield on the U.S. Treasury 10-year note is trading around 0.67% today.

U.S. economic data due for release Wednesday is light and includes the weekly MBA mortgage applications survey, the weekly Johnson Redbook and Goldman Sachs retail sales reports.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls still have the firm overall near-term technical advantage, amid recent choppy and sideways trading. Prices are still in an overall near-term uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at Tuesday’s high of $1,940.20 and then at $1,950.00. First support is seen at Tuesday’s low of $1,904.60 and then at $1,900.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the firm overall near-term technical advantage. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $30.19 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.80. First resistance is seen at Tuesday’s high of $27.385 and then at $27.89. Next support is seen at $26.50 and then at Tuesday’s low of $25.985. Wyckoff's Market Rating: 7.0.

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.