Gold, silver sink despite a "risk-off" trading day Tuesday
(Kitco News) - Gold and silver prices are sharply lower in midday trading Tuesday. Heavy profit taking and weak long liquidation from the shorter-term futures traders were featured today after both metals' prices hit a around four-week highs last Friday. The key "outside markets" were also bearish for the metals today as the U.S. dollar index was solidly higher and crude oil prices were lower. The safe-haven metals bulls were sorely disappointed their markets could not catch a bid and in fact sold off sharply amid keener risk aversion in the marketplace to start the U.S. trading week. October gold futures were last down $36.40 at $1,795.10. December Comex silver was last down $0.427 at $24.38 an ounce.
Global stock markets were mixed in quieter overnight trading. The U.S. stock indexes are mostly lower in midday New York trading. It was time to get back to work for those North American and European traders and investors that had been coasting the past several weeks. With U.S. stock indexes not far below their recent record highs, market watchers are wondering if those gains can be extended in the coming weeks, during what history shows can be rocky times for the stock and financial markets. Market participants today may have gotten a taste of what's to come during the sometimes historically turbulent month of September.
Economic data highlights this week include scheduled speeches by some U.S. Federal Reserve officials and the regular monetary policy meeting of the European Central Bank on Thursday. Last Friday's downbeat U.S. jobs report has many thinking the Fed won't be able to taper its bond-buying as soon as many Fed officials want.
The key outside markets today see the U.S. dollar index solidly higher as the greenback tries to recover from recent strong selling pressure that pushed prices to a four-week low last week. Nymex crude oil futures prices are lower and trading around $68.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.365%.
Technically, October gold futures bulls still have the slight overall near-term technical advantage but need to show fresh power soon to keep it. A four-week-old 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 July high of $1,836.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at $1,810.00 and then at $1,823.60. First support is seen at today's low of $1,791.80 and then at $1,779.20. Wyckoff's Market Rating: 6.0
The silver bulls and bears are on a level overall near-term technical playing field. However, prices are still in a four-week-old uptrend on the daily 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 $22.35. First resistance is seen at last week's high of $24.945 and then at $25.00. Next support is seen at $24.00 and then at last week's low of $23.775. Wyckoff's Market Rating: 5.0.
December N.Y. copper closed down 560 points at 427.80 cents today. Prices closed nearer the session low today. The key "outside markets" were bearish today as the U.S. dollar index was solidly higher and crude oil prices were lower. The copper bulls and bears are on a level overall near-term technical playing field. 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 434.65 cents and then at last week's high of 441.80 cents. First support is seen at 425.20 cents and then at 420.00 cents. Wyckoff's Market Rating: 5.0.