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Gold, silver weaker as U.S. dollar index rebounds

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(Kitco News) - Gold and silver prices are lower in midday U.S. trading Wednesday, on some follow-through selling pressure from sharp losses seen Tuesday. A higher U.S. dollar index this week is a negative outside market force working against the metals. October gold futures were last down $4.70 at $1,791.60. December Comex silver was last down $0.298 at $24.075 an ounce.

Global stock markets were mostly down in overnight trading. The U.S. stock indexes are modestly lower at midday. Risk aversion is a bit keener this week, as traders and investors are more worried about global economic growth prospects amid the Delta variant of the coronavirus that continues to spread in many major economies. Last Friday’s weak U.S. jobs report has supported the aforementioned notions and also thrown a scare into the stock market bulls. The safe-haven metals bulls are stymied this week by the fact gold and silver prices have sold off in the face of some heightened risk aversion.

Economic data highlights the rest of this week include scheduled speeches today by U.S. Federal Reserve officials John Williams, president of the New York Fed, and Dallas Fed President Robert Kaplan. On Thursday the regular monetary policy meeting of the European Central Bank occurs. No changes in ECB interest rate policy are expected, but traders will scrutinize any language regarding cutting back on the ECB’s bond-buying program (quantitative easing).

The other key outside market today sees Nymex crude oil futures prices higher and trading around $69.30 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.351%. 

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bulls still have the slight overall near-term technical advantage but are fading and need to show fresh power soon to keep a four-week-old price uptrend alive 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 today’s high of $1,802.20 and then at $1,810.00. First support is seen at today’s low of $1,780.80 and then at $1,775.00. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

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 today’s high of $24.48 and then at the September high of $24.945. Next support is seen at today’s low of $23.94 and then at last week’s low of $23.775. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed down 445 points at 423.70 cents today. Prices closed nearer the session low today and hit a two-week low. 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 429.95 cents and then at this week’s high of 434.65 cents. First support is seen at 420.20 cents and then at 416.55 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.