Bulls buy early dip in gold, prices trade modestly up
(Kitco News) - Gold futures prices are firmer in midday U.S. trading Monday. After losing modest overnight gains on news that another drug firm had a very good outcome on a Covid-19 vaccine trial, traders stepped in to buy the dip in the yellow metal and push prices back above unchanged. A weaker U.S. dollar index and higher crude oil prices also worked in favor of the precious metals bulls on this day. December gold futures were last up $5.30 at $1,891.50 and December Comex silver was last up $0.055 at $24.83 an ounce.
Moderna early this morning announced strong results in its third stage of a vaccine trial. Moderna’s vaccine is deemed at 94.5% effective and it only requires refrigeration of the vaccine, and not the extreme cold needed to keep Pfizer’s vaccine. The U.S. presently has 11 million Covid-19 cases and many hospitals are full or nearly full. It looks to be a dour three months ahead for the U.S. and much of Europe. But after that, may expect life to start to get back to normal.
Global stock markets were mostly higher overnight, while the Dow and S&P 500 stock indexes are solidly higher at midday. The global markets are still pricing in the Covid-19 vaccines that will likely come on line for the general public in the coming few months, and then followed by a likely very rapid increase in economic growth in major countries hit hard by the pandemic.
U.S. markets were also assuaged by weekend reports the incoming Biden administration is not planning to impose a national lockdown on the U.S. economy.
Asian shares were boosted in part on a trade deal signed by China, Japan, South Korea and 12 other countries, who produce one-third of global GDP.
Technically, December gold futures prices scored a bullish “outside day” up on the daily bar chart today. The gold bulls have the overall near-term technical advantage. Recent price action has formed a bearish flag pattern, but one more day of gains would negate it. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the November high of $1,966.10. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,848.00. First resistance is seen at $1,900.00 and then at $1,920.00. First support is seen at today’s low of $1,861.50 and then at $1,848.00. Wyckoff's Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November 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 today’s high of $25.155 and then at $25.50. Next support is seen at today’s low of $24.555 and then at last week’s low of $23.60. Wyckoff's Market Rating: 6.5.
December N.Y. copper closed up 475 points at 322.50 cents today. Prices closed near mid-range and hit a nearly two-year high. 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 350.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 302.85 cents. First resistance is seen at today’s high of 326.25 cents and then at 330.00 cents. First support is seen at 320.00 cents and then at today’s low of 317.90 cents. Wyckoff's Market Rating: 8.0.