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Gold, silver gain as early losses seen as buying opportunity

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(Kitco News) - Gold and silver prices are higher in midday U.S. trading Wednesday. Gains in the metals are seen despite a solid rebound in the U.S. stock market. A weaker U.S. dollar index at midday is also working in favor of the precious metals bulls. Still, the gold and silver bulls need a positive fundamental spark to break prices out of the recent sideways trading ranges. October gold futures were last up $12.30 at $1,947.40 and December Comex silver was last up $0.114 at $27.105 an ounce.

Global stock markets were mixed overnight. European shares were mostly up and Asian shares mostly down. The marketplace is presently shrugging off 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 solidly higher and trading around $38.25, on a corrective bounce following sharp losses recently. The yield on the U.S. Treasury 10-year note is trading around 0.68% today.

Live 24 hours gold chart [Kitco Inc.]

Technically, October gold futures bulls have the firm overall near-term technical advantage amid recent choppy trading. Prices are still in a five-month-old 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 $1,950.00 and then at $1,972.40. First support is seen at today’s low of $1,918.80 and then at this week’s low of $1,904.60. 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 amid a five-month-old price uptrend still in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the September high of $29.235 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $27.385 and then at $27.89. Next support is seen at today’s low of $26.565 and then at this week’s low of $25.985. Wyckoff's Market Rating: 7.0.

December N.Y. copper closed up 180 points at 304.30 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage as prices are in an uptrend on the daily bar chart. However, the recent higher volatility at higher price levels is a warning signal that a topping process could be occurring. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 309.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 279.60 cents. First resistance is seen at today’s high of 305.00 cents and then at 309.45 cents. First support is seen at this week’s low of 299.80 cents and then at last week’s low of 295.35 cents. Wyckoff's Market Rating: 7.5.

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.