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Gold, silver slip as U.S. dollar steadies, risk aversion not keen

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(Kitco News) - Gold and silver prices are lower in midday U.S. trading Tuesday, pressured by a modest rebound in the U.S. dollar index today and by still-upbeat traders and investor risk attitudes early this week. December gold futures were last down $10.70 at $1,909.90 and December Comex silver was last down $0.51 at $24.05 an ounce.

Global stock markets were mixed overnight, with European shares slightly down and Asian shares modestly up. U.S. stock indexes are mixed at midday. The marketplace is seeing less risk aversion early this week as President Trump left the hospital Monday evening and appeared to be in good spirits amid his battle with Covid-19. Ironically, a very big lead for Democrat Joe Biden in presidential election polls is also somewhat comforting the markets. Reason: A decisive Biden win would likely mean Trump would have a harder time contesting the results, to possibly suggest a smoother transfer of power. The markets may also be looking at a Biden win as meaning bigger government financial aid packages for U.S. businesses and citizens. Just remember, its 2020, so expect the unexpected.  

A feature in the marketplace just recently has been rising government bond yields. The yield on the benchmark U.S. Treasury 10-year note is trading around 0.76% today.

Fed Chairman Jerome Powell delivered a speech to a meeting of the National Association of Business Economists (NABE) today. He said the U.S. economic recovery is occurring faster than expected but the outlook is still “highly uncertain.” He added the U.S. economic recovery has moderated since early summer, adding that the fast recovery could turn into a “longer-than-expected slog.”

The U.S. Congress continues to discuss a second big financial aid package to deal with the negative economic impact of Covid-19. However, a deal between Democrats and Republicans still does not appear close.

The important outside markets early today see the U.S. dollar index slightly higher but near its daily high. Nymex crude oil prices are higher and trading around $40.25 a barrel.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bulls still have the overall near-term technical advantage. A two-month-old downtrend is in place on the daily bar chart, but more gains this week would likely negate it. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,950.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at today’s high of $1,927.00 and then at $1,950.00. First support is seen at $1,900.00 and then at this week’s low of $1,891.20. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage. However, prices are still in a two-month-old downtrend 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 the September low of $21.81. First resistance is seen at this week’s high of $24.675 and then at $25.00. Next support is seen at this week’s low of $23.805 and then at $23.50. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 10 points at 296.40 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage amid choppy and more volatile trading at higher levels, which is not bullish. 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 300.00 cents and then at last week’s high of 304.65 cents. First support is seen at this week’s low of 293.20 cents and then at 290.00 cents. Wyckoff's Market Rating: 6.5.

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.