Gold, silver back off on profit taking from recent gains
(Kitco News) - Gold and silver prices are lower in midday trading Wednesday, but up from session lows, on some routine profit taking and downside corrections after recent gains. Better risk appetite recently is also a bearish element for the safe-haven metals. October gold futures were last down $16.30 at $1,790.00. September Comex silver was last down $0.104 at $23.79 an ounce.
The U.S. stock indexes are higher at midday and at or near record highs. Risk appetite is keener this week as attention of the marketplace is on the annual Federal Reserve symposium held in Jackson Hole, Wyoming late this week. Fed Chair Jerome Powell is slated to speak virtually on Friday. Many traders and investors are thinking the Federal Reserve will decide to extend its easy-money policies for a longer period of time than they had reckoned just a few weeks ago, due to the rapidly spreading Covid delta variant. The marketplace that remains flush with cash continues to see much of that cash flowing into stock markets. The aforementioned scenario is also friendly for the metals markets, as it also suggests better demand for them.
U.S. congressional Democrats on Tuesday agreed upon a $1 trillion spending bill for infrastructure, and that is also boosting risk appetite at mid-week.
The key outside markets today see the U.S. dollar index slightly firmer and still trending higher. Nymex crude oil futures prices are higher and trading around $68.00 a barrel. This week’s strong rebound in crude prices suggests the market has put in a near-term bottom. That’s a bullish element for the entire raw commodity sector, including the metals. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching around 1.31%.
Technically, gold bulls still have the overall near-term technical advantage. A price uptrend is still in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the August high of $1,833.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at $1,800.00 and then at this week’s high of $1,809.80. First support is seen at today’s low of $1,781.90 and then at this week’s low of $1,775.90. Wyckoff's Market Rating: 6.0
The silver bears have the overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. 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 August low of $22.295. First resistance is seen at $24.00 and then at $24.38. Next support is seen at Tuesday’s low of $23.545 and then at $23.00. Wyckoff's Market Rating: 3.0.
September N.Y. copper closed up 70 points at 426.50 cents today. Prices closed near mid-range today. The copper bears still have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 443.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 396.15 cents. First resistance is seen at today’s high of 430.25 cents and then at 435.00 cents. First support is seen at Tuesday’s low of 419.05 cents and then at this week’s low of 412.90 cents. Wyckoff's Market Rating: 4.0.