Gold edges up as stock market bulls become more cautious
(Kitco News) - Gold prices are mildly up in midday U.S. trading Monday, due in part to U.S. stock indexes backing down from their daily highs as equities investors are becoming just a bit nervous, what with the months of September and October being known for stock and financial market turbulence. However, the recent rally in the U.S. dollar index is keeping gains in the precious metals limited. October gold futures were last up $3.20 at $1,793.10. December Comex silver was last down $0.10 at $23.80 an ounce.
Trader attention early this week is on the U.S. consumer price index report for August, set for release Tuesday morning. The CPI is forecast up 0.4% after a rise of 0.5% in July. Year-on-year the CPI is seen up 5.4% in August—the same as July. Said Bloomberg news in a morning email dispatch: "On the raw-materials side, the price pressures are becoming increasingly hard to ignore with aluminum hitting the highest level in 13 years. Oil is back above $70 a barrel this morning. Producers are pushing the higher prices through to consumers as they battle with the increased costs of raw materials, shipping bottlenecks and rising labor expenses."
The key outside markets today see the U.S. dollar index higher Monday. Nymex crude oil futures prices are also higher and trading around $70.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.3%.
Technically, gold bulls have the slight overall near-term technical advantage but need to show more power soon to keep it. A four-week-old price uptrend on the daily bar chart has stalled out. 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 $1,803.70 and then at $1,815.00. First support is seen at the September low of $1,780.80 and then at $1,772.00. Wyckoff's Market Rating: 5.5
The silver bears have the slight overall near-term technical advantage. A four-week-old uptrend on the daily chart has been 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 $22.35. First resistance is seen at $24.00 and then at $24.345. Next support is seen at today's low of $23.36 and then at $23.00. Wyckoff's Market Rating: 4.5.
December N.Y. copper closed down 775 points at 437.30 cents today. Prices closed nearer the session low today after hitting a six-week high early on. 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 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 447.15 cents and then at 450.00 cents. First support is seen at today's low of 433.15 cents and then at 430.00 cents. Wyckoff's Market Rating: 5.5.