Gold, sees good gains as risk aversion returns
(Kitco News) - Gold futures prices are solidly up in midday U.S. trading Thursday. Safe-haven demand is featured late this week as the early-week stock market rallies are now becoming suspect amid the spike in Covid-19 cases in the U.S. and Europe. The precious metals are also seeing some support from a weaker U.S. dollar index on this day. December gold futures were last up $19.60 at $1,881.30 and December Comex silver was last up $0.173 at $24.44 an ounce.
Global stock markets were mixed overnight, while U.S. stock indexes are mixed to lower at midday. The U.S. has seen over 240,000 deaths and more than 10.3 million confirmed Covid-19 infections, with new cases soaring to all-time highs of well over 120,000 per day over the past week. The marketplace is paying more attention to the worrisome news as the likelihood of increasing business and public-gathering restrictions in the weeks and months ahead is rapidly growing. While news earlier this week of successful Covid vaccines coming on line in the coming months boosted trader and investor confidence, that initial euphoria has waned as the week has progressed.
The marketplace is also becoming increasingly concerned, although not seriously alarmed yet, about a smooth transition of power for the U.S. presidency. Outgoing President Trump is not conceding the election he lost and appears to be hampering President-elect Biden’s transition to power. Trump this week fired the U.S. military’s leader, defense secretary Mark Esper.
U.S. Treasury bond and note yields have risen to eight-month highs this week, on the prospects for a solid U.S. economic recovery in the second half of 2021. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.90%.
The U.S. dollar index is weaker early today. The other important outside market sees crude oil prices firmer and trading around $42.00 a barrel.
Technically, December gold futures bulls have the overall near-term technical advantage and are working to stabilize the market. Recent price action has formed a bearish pennant or flag pattern. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,848.00. First resistance is seen at Tuesday’s high of $1,888.90 and then at $1,900.00. First support is seen at today’s low of $1,860.70 and then at Wednesday’s low of $1,853.90. Wyckoff's Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage and are working to stabilize the market after Monday’s strong losses. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $26.135 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 Tuesday’s high of $24.58 and then at $25.00. Next support is seen at Wednesday’s low of $23.81 and then at this week’s low of $23.60. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed up 185 points at 315.35 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 321.80 cents. The next downside price objective for the bears is closing prices below solid technical support at 290.00 cents. First resistance is seen at Wednesday’s high of 317.55 cents and then at 321.80 cents. First support is seen at this week’s low of 309.65 cents and then at 306.00 cents. Wyckoff's Market Rating: 7.5.