Gold, silver see mid-week rebounds, but off from daily highs
(Kitco News) - Gold and silver futures prices are moderately higher but off their session highs in midday U.S. trading Wednesday. Bullish traders stepped in to buy Tuesday’s sharp dip in prices. A weaker U.S. dollar index at mid-week also aided the precious metals market bulls. December gold futures were last up $10.80 at $1,905.20 and December Comex silver was last up $0.191 at $24.32 an ounce.
Gold and silver came off their daily highs and pared daily gains by about half when the U.S. dollar index also dropped well down from its session high. About the same time, news reports said U.S. House speaker Pelosi and Treasury Secretary Mnuchin are still far apart on any stimulus package for Americans—suggesting a deal won’t get done until after the election, or maybe not even this year.
Global stock markets were mixed overnight. U.S. stock indexes are lower at midday, pressured on the downbeat Covid stimulus package news. Featured in the stock markets this week is third-quarter earnings reports from major companies. The worrisome spreading of the Covid-19 virus in major industrialized countries and elsewhere also has traders and investors tentative at mid-week. Microsoft founder Bill Gates, who has been studying pandemics for many years, said in a CNBC interview today that the U.S. should expect a “rough” next several months regarding the Covid-19 virus.
The approaching U.S. presidential election and doubts of any new U.S. stimulus package for Americans before the end of the year are also unknowns that have paused the stock indexes at mid-week, and somewhat supported the precious metals markets.
The important outside markets early today see the U.S. dollar index weaker. Nymex crude oil prices are higher and trading around $41.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.7% today.
Technically, December gold futures bulls have the overall near-term technical advantage as trading has turned choppy. 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 today’s high of $1,917.50 and then at Tuesday’s high of $1,930.60. First support is seen at today’s low of $1,885.00 and then at last week’s low of $1,877.10. Wyckoff's Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage. 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 Tuesday’s high of $25.31. Next support is seen at today’s low of $23.93 and then at $23.50. Wyckoff's Market Rating: 6.5.
December N.Y. copper closed down 5 points at 304.40 cents today. Prices closed nearer the session low 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 this week’s low of 302.65 cents and then at 300.00 cents. Wyckoff's Market Rating: 7.5.