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Gold, silver gain as greenback pulls back

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(Kitco News) - Gold and silver prices moderately up in midday U.S. trading Monday. The precious metals markets are being supported by a pullback in the U.S. dollar index on this day. Short covering in the futures market and perceived bargain hunting in the cash market were featured in both metals today, after they hit two-month lows last week. December gold futures were last up $11.90 at $1,878.10 and December Comex silver was last up $0.357 at $23.45 an ounce.

Global stock markets were mixed to mostly firmer overnight. U.S. stock indexes higher at midday. Traders and investors are less risk averse to start the trading week, but they know the next six weeks could be highly volatile for many markets, what with the U.S. elections coming in early November amid concerns about a smooth transfer of power if President Trump losses the election. Covid-19 cases are on the rise in many countries, the Brexit issue is coming down to the wire with no deal between the U.K. and the EU, and high tensions continue between the U.S. and China. These are also worrisome elements to spice up the uncertainty mix in the market place at present. Such are also likely supporting some safe-haven demand for gold and silver.

In other overnight news, China’s central bank at its regular monetary policy meeting has just pledged to keep its monetary policy more flexible and targeted, including giving more credit to businesses.

The important outside markets early today see the U.S. dollar index down on a corrective pullback after hitting a two-month high late last week. Nymex crude oil prices are firmer and trading around $40.50 a barrel. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.67% today.

Discussions between U.S. Democrats and Republicans on a second financial stimulus package for Americans are still ongoing, but many doubt a deal can be reached and implemented before the U.S. election.

The U.S. economic data point highlight of the week will be Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices were poised to score a mildly bullish “outside day” up on the daily bar chart today. The gold bulls have the slight overall near-term technical advantage but a six-week-old downtrend is still in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,820.00. First resistance is seen at $1,900.00 and then at $1,910.00. First support is seen at last week’s low of $1,851.00 and then at $1,835.00. Wyckoff's Market Rating: 5.5.

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls and bears are on a level overall near-term technical playing field but prices are trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at $24.00 and then at $24.62. Next support is seen at today’s low of $22.61 and then at $22.00. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed up 140 points at 298.50 cents today. Prices closed near mid-range today. The copper bulls have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 312.10 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 301.15 cents and then at 305.00 cents. First support is seen at last week’s low of 291.35 cents and then at of 290.00 cents. 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.