Sharp price declines for gold, silver as USDX rallies
(Kitco News) - Gold and silver futures prices are sharply down in midday U.S. trading Tuesday, and seeing pressure from solid gains in the U.S. dollar index on this day. December gold futures were last down $32.90 at $1,895.80 and December Comex silver was last down $1.166 at $24.11 an ounce.
The safe-haven metals bulls need a new fundamental news spark, to take focus away from the recent, overall tepid appreciation in the greenback that should arguably not be influencing the metals markets that much.
Global stock markets were mixed overnight. U.S. stock indexes are weaker in midday trading. Featured in the stock markets this week will be third-quarter earnings reports from major companies.
Many major industrialized countries, including the U.S., just can’t tamp down the Covid-19 infection spread. Johnson and Johnson has now paused its Covid vaccine trials, in what was hoped to be a promising vaccine.
In overnight news, China’s imports in September were up 13.2% after falling 2.1% in August. Exports were up 9.9% in September. Both imports and exports beat market expectations and underscore how China’s forced and nearly complete lockdowns for its Covid-19 hotspots have put that country’s economy back on track much sooner than most of the free world’s economies.
The other important outside market today sees Nymex crude oil prices are higher and trading around $40.35 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.75% today.
Technically, December gold futures bulls still have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,927.00. 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 $1,920.00 and then at today’s high of $1,930.60. First support is seen at today’s low of $1,889.30 and then at last week’s low of $1,877.10. Wyckoff's Market Rating: 6.0
December silver futures still have the overall near-term technical advantage. However, prices are still in a fledgling uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00 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 $25.00 and then at today’s high of $25.31. Next support is seen at $24.00 and then at $23.50. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed down 225 points at 304.15 cents today. Prices closed near mid-range today. The copper bulls have the firm 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 October low of 283.45 cents. First resistance is seen at last week’s high of 309.80 cents and then at 312.10 cents. First support is seen at today’s low of 302.65 cents and then at 300.00 cents. Wyckoff's Market Rating: 7.5.