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Gold, silver see routine downside corrections, but bulls gaining ground

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(Kitco News) - Gold and silver futures prices are weaker in midday U.S. trading Monday, on some normal corrective pullbacks after gains Friday that produced technically bullish weekly high closes. Better risk appetite to start the trading week, as seen by the S&P 500 and Nasdaq stock indexes scoring record highs today, is also a negative for the safe-haven metals. October gold futures were last down $6.60 at $1,810.60. September Comex silver was last down $0.122 at $23.94 an ounce.

Global stock markets were mostly firmer overnight. The U.S. stock indexes are higher at midday. U.S. trader and investor attention to start the trading week was on Hurricane Ida that pounded the Louisiana and Mississippi coasts Sunday and overnight. The final days of the U.S. evacuations in Kabul, Afghanistan occur early this week, after last week’s terror attack that killed scores. Later this week comes the all-important U.S. jobs report on Friday morning.

Traders have mostly digested last week’s Jackson Hole, Wyoming annual Federal Reserve symposium. While several Federal Reserve officials gave hawkish interviews last week, Fed Chairman Jay Powell said on Friday that while the Fed could begin to reduce its monthly bond purchases this year, it will be in no hurry to raise interest rates. Powell’s remarks were not deemed as being overly hawkish on U.S. monetary policy.

The key outside markets today see the U.S. dollar index slightly higher and still trending higher. Nymex crude oil futures prices are firmer and trading around $69.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.28%. 

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bulls have the overall near-term technical advantage and are still sitting pretty good after last Friday’s bullish weekly high close. A price uptrend is 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 today’s high of $1,823.60 and then at $1,833.40. First support is seen at $1,800.00 and then at $1,779.20. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. However, last Friday’s bullish weekly high close suggests a market bottom is in place. And, a three-month-old downtrend on the daily bar chart has been at least temporarily negated. 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 today’s high of $24.22 and then at $24.515. Next support is seen at $23.75 and then at $23.50. Wyckoff's Market Rating: 4.0.

December N.Y. copper closed up 405 points at 437.25 cents today. Prices closed near mid-range today. The copper bulls and bears are back on a level overall near-term technical playing field and have momentum. A four-week-old downtrend on the daily bar chart has been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 458.60 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 396.65 cents. First resistance is seen at today’s high of 441.80 cents and then at 445.00 cents. First support is seen at today’s low of 433.05 cents and then at 430.00 cents. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.