Gold, silver gain as greenback erodes
(Kitco News) - Gold and silver prices are solidly up in midday U.S. trading Monday. Gains in the metals are occurring despite keener risk appetite in the marketplace to start the trading week, as seen by rallies in global stock markets. Losses in the U.S. dollar index today are helping to boost the metals markets, as are the metals’ still-bullish technical postures. October gold futures were last up $20.50 at $1,960.00 and December Comex silver was last up $0.563 at $27.425 an ounce.
Global stock markets were mostly up overnight. U.S. stock indexes are solidly higher at midday. Trader and investor risk sentiment is upbeat to start the trading week. There were two big company deals announced over the weekend: Softbank plans to sell chipmaker ARM to Nvidia for more than $40 billion, and Gilead Sciences plans to acquire Immunomedics for $21 billion. Meantime, AstraZeneca said it has resumed its phase-three trial on a Covid-19 vaccine after being suspended last week. Pfizer also announced its vaccine could be distributed before year-end if all goes well with its trials.
Major central bank meetings are in the spotlight this week. The Federal Reserve, Bank of England and Bank of Japan all have monetary policy meetings this week. The Fed’s FOMC meeting will be closely scrutinized following its shift to an easing of its inflation constricts. The question remains how the FOMC puts its new policy into action. Some light could be shed on the matter this week.
The other important outside market sees Nymex crude oil prices are slightly weaker and trading around $37.15. The yield on the U.S. Treasury 10-year note is trading around 0.67% today.
There was no major U.S. economic data released Monday but the report pace picks up rapidly on Tuesday.
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. Recent price action has produced a bullish coiling pattern that is likely to see a bigger price move coming soon, with the odds favoring the upside. 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 last week’s high of $1,966.60 and then at $1,972.40. First support is seen at today’s low of $1,937.00 and then at $1,925.00. Wyckoff's Market Rating: 7.0
December silver futures bulls have the firm overall near-term technical advantage amid a five-month-old price uptrend 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 last week’s high of $27.755 and then at $28.00. Next support is seen at today’s low of $26.85 and then at $26.50. Wyckoff's Market Rating: 7.0.
December N.Y. copper closed up 300 points at 306.95 cents today. Prices closed nearer the session high today and are back near the recent high. The copper bulls have the solid overall near-term technical advantage as prices are in a six-month-old uptrend on the daily bar chart. 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 309.45 cents and then at 312.50 cents. First support is seen at today’s low of 302.50 cents and then at 300.00 cents. Wyckoff's Market Rating: 8.0.