Gold, silver post slight gains, supported by slumping USDX
(Kitco News) - Gold and silver futures prices are modestly up in midday U.S. trading Tuesday. An eroding U.S. dollar index this week is a supporting the precious metals market bulls. However, gains in the safe-haven metals are being limited as trader and investor risk attitudes have up-ticked just a bit on slightly improved hopes for a U.S. stimulus package deal. December gold futures were last up $0.90 at $1,912.60 and December Comex silver was last up $0.122 at $24.82 an ounce.
Global stock markets were mixed to firmer overnight. U.S. stock indexes higher at midday on hopes the U.S. Congress and the Trump administration can come to agreement on a new Covid-19 stimulus package. House Speaker Pelosi set a deadline for today on getting a deal completed. Now, some in the marketplace sense a deal could be reached by the end of today. Others remain doubtful. Corporate earnings reports are also in focus at present.
Still, trader and investor risk appetite is being squelched by the Covid news that is getting worse every day. Infections are rising in Europe, the U.S. and South America. No vaccine coming to the public is in sight. However, there is a consensus in the marketplace that there will not be the near-complete lockdowns of businesses and economies that were seen in the spring, even if the Covid situation gets worse, which many expect it will as winter approaches in the northern hemisphere.
The other important outside market today sees Nymex crude oil prices firmer and trading around $41.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.78% today.
Technically, December gold futures bulls have the overall near-term technical advantage as trading has turned choppy and sideways. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,939.40. 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 this week’s high of $1,923.40 and then at $1,931.00. First support is seen at $1,900 and then at today’s low of $1,896.60. Wyckoff's Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage and are working on a price uptrend on the daily 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 this week’s high of $25.12 and then at the October high of $25.71. Next support is seen at this week’s low of $24.215 and then at $24.00. Wyckoff's Market Rating: 6.5.
December N.Y. copper closed up 570 points at 314.30 cents today. Prices closed nearer the session high today and hit a more-than-two-year high. The copper bulls have the solid overall near-term technical advantage and gained more power today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 317.05 cents and then at 320.00 cents. First support is seen at 310.00 cents and then at this week’s low of 305.70 cents. Wyckoff's Market Rating: 8.5.