Gold, silver see some mild short covering, bargain hunting Wed.
(Kitco News) - Gold and silver futures prices are modestly up in midday U.S. trading Wednesday, on some short covering in the futures market and some perceived bargain hunting in the cash market. Gold hit a nearly five-month low Tuesday. Gold and silver have been socked this week by much better risk appetite in the marketplace. December gold futures were last up $4.40 at $1,809.00 and December Comex silver was last up $0.135 at $23.435 an ounce.
Marketplace attitudes have been very upbeat this week, as traders and investors are opting to look past the presently very bad Covid-19 situation in the U.S. and Europe, which is forcing fresh restrictions on businesses and the public. Instead, markets are looking into 2021, when vaccines are very likely coming to market and economies are very likely to be strongly rebounding as Covid gets tamped down. Also this week, President Trump has blinked regarding realizing Joe Biden beat him in the U.S. presidential election and has allowed Biden’s team to get government assistance in setting up shop.
U.S. stock indexes are mixed at midday but on Tuesday did see the Dow and S&P 500 stock indexes post record-high closes. Trading in many markets, including the metals, was a bit more subdued today, ahead of the U.S. Thanksgiving holiday on Thursday. And then on Friday it’s usually one of the slowest U.S. trading days of the year.
It was a very busy day for U.S. economic data. Weekly jobless claims that came in higher than expected again this week did give a brief, modest lift to gold and silver prices. Traders were awaiting the afternoon release of the FOMC minutes.
The U.S. dollar index is weaker at midday today, which is also supportive for the metals markets on this day. The other important outside market sees January Nymex crude oil futures prices firmer, hitting an eight-month high and trading around $45.65 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.86%.
As an aside, many conspiracy theorists have blamed JP Morgan for manipulating futures markets over the years, especially gold. Many market watchers have brushed those notions off, reckoning major futures markets are way too big to see significant and sustained price manipulation. For JP Morgan’s part, the big investment bank was just fined another quarter-billion dollars for “fiduciary” shortcomings. JP’s long list of big government fines over the years certainly begs the question: “What if JP is big enough to have a sustained and significant influence over markets?” The bank’s unsavory actions at the least suggest, “it could if it would.” In September, JP paid almost a billion dollars to settle market manipulation charges in precious metals and U.S. Treasuries between 2008 and 2016, and admitted to the misconduct.
Technically, December gold futures bulls and bears are on a level overall near-term technical playing field. However, prices are now in a fledgling downtrend on the daily chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at this week’s high of $1,875.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at today’s high of $1,816.30 and then at $1,825.00. First support is seen at this week’s low of $1,797.10 and then at $1,775.00. Wyckoff's Market Rating: 5.0
December silver futures bulls have the slight overall near-term technical advantage but have faded this week. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 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 Tuesday’s high of $23.65 and then at $24.00. Next support is seen at this week’s low of $22.935 and then at the October low of $22.625. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed up 50 points at 330.45 cents today. Prices closed near mid-range today and hit another 2.5-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 333.05 cents and then at 335.00 cents. First support is seen at this week’s low of 323.50 cents and then at 320.00 cents. Wyckoff's Market Rating: 8.0.