Gold, silver erase early losses as U.S. stock market wilts
(Kitco News) - Gold and silver futures prices are trading near steady levels at midday Monday, recovering solid early losses that saw gold hit a 5.5-month low and silver notch a nine-week low. Traders and investors are exhibiting little risk aversion at present as seen by recent rallies in global stock markets. However, both metals did regain a bit of ground as the U.S. stock market at midday has lost its early gains and is trading lower. Still, amid no geopolitical hotspots at present, Covid-19 vaccine hopes and an apparent smoother transition of U.S. presidential duties seen, that’s all bearish for the safe-haven metals. February gold futures were last down $1.00 at $1,787.20 and March Comex silver was last up $0.046 at $22.69 an ounce.
Somewhat denting trader and investor enthusiasm on this last trading day of the month are reports the out-going Trump administration will further sanction major Chinese companies in the coming weeks.
Copper prices in Shanghai hit a more-than-eight-year high Monday, while prices in London are at a more-than-four-year high. China’s strong economic recovery continues, with the latest data showing its November manufacturing purchasing managers index (PMI) at 52.1 versus 51.4 in October, and 51.5 expected. The non-manufacturing PMI came in at 56.4 in November compared to 56.2 last month and 56.0 expected. The official manufacturing PMI reading was the highest since September 2017, while the mon-manufacturing PMI was the highest reading since June of 2012. There is speculation a Chinese copper producer which may have sold copper forwards at lower price levels and is now caught in a “short squeeze” situation.
The U.S. dollar index is slightly up at midday after hitting a 2.5-year low early on today. The other important outside market sees January Nymex crude oil futures prices weaker and trading around $45.00 a barrel. There is an OPEC meeting that begins Monday and will be closely watched by the marketplace. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.85%.
Technically, February gold futures bears have gained the overall near-term technical advantage. Prices are 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 $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,800.00 and then at $1,825.00. First support is seen at today’s low of $1,767.20 and then at $1,750.00. Wyckoff's Market Rating: 4.0
March silver futures bears have the slight overall near-term technical advantage are prices are now trending down on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at $23.00 and then at Friday’s high of $23.575. Next support is seen at $21.93 and then at $21.50. Wyckoff's Market Rating: 4.5.
March N.Y. copper closed up 240 points at 344.15 cents today. Prices closed nearer the session low after hitting another multi-year 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 360.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 320.00 cents. First resistance is seen at today’s high of 350.50 cents and then at 355.00 cents. First support is seen at today’s low of 341.70 cents and then at 340.00 cents. Wyckoff's Market Rating: 8.5.