Gold, silver can't hold early gains despite some risk aversion
(Kitco News) - Gold and silver prices are modestly down in midday U.S. trading Thursday. Some early safe-haven buying amid a more uncertain marketplace late this week gave way to what appears to be some profit-taking from the shorter-term futures traders after recent gains. Gold notched a three-week high overnight. August gold futures were last down $3.30 at $1,798.80 and September Comex silver was last down $0.124 at $26.005 an ounce.
Global stock markets were mostly lower overnight. The U.S. stock indexes are lower at midday but up from their daily lows. Keener risk aversion returned to the marketplace late this week. Featured in the marketplace this week is traders unwinding their "inflation" positions. That means selling commodity markets and buying U.S. Treasuries. Nymex crude oil futures are firmer at midday today and trading around $72.75 a barrel after hitting a six-year high of $76.98 earlier this week. This week's big losses in crude oil have created chart clues that suggest a market top is in place. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.3% after hitting a five-month low this week.
Covid-19 deaths worldwide topped 4 million this week and the Delta virus is continuing to spread. The marketplace is once again starting to pay more attention to this matter, and exhibit some anxiety, after a few months of enjoying not having the pandemic near the front burner. Tokyo is in a state of emergency in trying to deal with the virus as the intense spotlight of the Olympics is set to shine on Tokyo.
Technically, August gold futures prices scored a bearish "outside day" down on the daily bar chart today after hitting a three-week high early on. The gold bulls and bears are on a level overall near-term technical playing field. Bulls' next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,750.10. First resistance is seen at $1,810.00 and then at today's high of $1,819.50. First support is seen at today's low of $1,793.50 and then at this week's low of $1,784.70. Wyckoff's Market Rating: 5.0
The silver bulls and bears are on a level overall near-term technical playing field. 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 $25.00. First resistance is seen at today's high of $26.31 and then at $26.545. Next support is seen at today's low of $25.875 and then at the June low of $25.58. Wyckoff's Market Rating: 5.0.
September N.Y. copper closed down 585 points at 426.40 cents today. Prices closed nearer the session low today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at Wednesday's high of 436.20 cents and then at this week's high of 440.25 cents. First support is seen at today's low of 423.25 cents and then at 420.00 cents. Wyckoff's Market Rating: 5.5.