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Gold sees mild corrective pullback from recent gains

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(Kitco News) - Gold prices are modestly down in midday U.S. trading Tuesday, on some routine profit taking from the shorter-term futures traders and a corrective pullback from recent gains. A modest rebound in the U.S. dollar index from its overnight losses also put some mild pressure on the precious metals today. Better risk appetite in the marketplace the past few trading sessions is also a negative for the safe-haven gold and silver markets. October gold futures were last down $2.60 at $1,952.10 and December Comex silver was last up $0.005 at $27.36 an ounce.

Global stock markets were mostly up overnight. U.S. stock indexes are higher at midday. Trader and investor risk appetite is keener early this week as many stock markets have rebounded from recent strong selling pressure that began the month of September. Covid vaccine hopes and recent stock mergers and takeovers are also boosting investor attitudes.

In overnight news, China released some more upbeat economic data that further suggests its economy is taking off faster than other major economies, following the Covid-19 lockdowns. China’s industrial production in August was up 5.6%, year-on-year, and up 1.0% from July. Meantime, U.S. industrial production rose 0.4% in August from July, failing to meet expectations for a 1.0% rise in the period. However, July industrial production was revised up 0.5%, to a 3.5% rise from June.

The International Energy Agency (IEA) Tuesday painted a gloomy picture for crude oil demand the rest of this year, predicting it would decline 8.4 million barrels per day, overall, this year.

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 for more clarity following its shift to an easing of its inflation constricts. The FOMC meeting began Tuesday morning and ends Wednesday afternoon. 

The other important outside market today sees Nymex crude oil prices firmer and trading around $38.00. 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 today’s high of $1,973.80 and then at $1,992.50. First support is seen at Monday’s low of $1,937.00 and then at $1,925.00. 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 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 today’s high of $27.865 and then at $28.00. Next support is seen at Monday’s low of $26.85 and then at $26.50. Wyckoff's Market Rating: 7.0.

December N.Y. copper closed down 110 points at 305.55 cents today. Prices closed nearer the session low today. 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 Monday’s low of 302.50 cents and then at 300.00 cents. Wyckoff's Market Rating: 8.0.

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.