Gold, silver down on technical selling, upbeat U.S. report
(Kitco News) - Gold and silver prices are are lower in midday U.S. trading Wednesday. Some technical selling pressure from the shorter-term futures traders is featured today, as the chart postures for both gold and silver have deteriorated just recently. The metals bulls need a fresh fundamental spark to ignite their enthusiasm. October gold futures were last down $12.80 at $1,792.20. December Comex silver was last down $0.12 at $23.765 an ounce.
A stronger-than-expected Empire State manufacturing survey released earlier today fell into the camp of the U.S. monetary policy hawks, and that helped to pressure the gold and silver markets. Traders are looking forward to next week’s FOMC meeting of the Federal Reserve for some more clarity on the timing of any future policy moves from the Fed that are likely to be a tapering of its monthly bond-buying program (quantitative easing).
Global stock markets were mostly weaker in overnight trading. The U.S. stock indexes are higher at midday. There is less risk aversion in the marketplace so far this week, half-way through what can be the tumultuous month of September. That’s also a negative for the safe-haven metals.
The key outside markets today see the U.S. dollar index lower again. Nymex crude oil futures prices are solidly higher, hit a six-week high, and are trading around $72.50 a barrel. Oil prices have been rising recently as Hurricane Ida’s aftermath sees around 40% of crude oil production in the Gulf of Mexico still off-line, with 48% of natural gas production off-line. 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. However, a four-week-old price uptrend on the daily bar chart has stalled out and bulls need to show fresh power soon to keep their slight edge. 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 this week’s high of $1,808.40 and then at $1,823.60. First support is seen at this week’s low of $1,778.60 and then at $1,772.00. Wyckoff's Market Rating: 5.5
The silver bears have the overall near-term technical advantage. 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 this week’s low of $23.36 and then at $23.00. Wyckoff's Market Rating: 4.0.
December N.Y. copper closed up 840 points at 440.50 cents today. Prices closed nearer the session high today. The copper bulls have the 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 the September high of 447.15 cents and then at 450.00 cents. First support is seen at this week’s low of 428.70 cents and then at 425.00 cents. Wyckoff's Market Rating: 6.0.