Gold, silver weaker as U.S. equities posting solid gains at midday
(Kitco News) - Gold and silver prices are down in midday U.S. trading Tuesday, amid solid rebounds in the U.S. stock indexes after they saw selling pressure Monday. A firmer U.S. dollar index and rising U.S. Treasury yields today are also negatives for the metals markets. December gold futures were last down $8.60 at $1,759.00. December Comex silver was last down $0.059 at $22.585 an ounce.
Despite today's gains in the U.S. stock indexes, there are still some risk-off attitudes in the marketplace. Another Chinese property firm, Fantasia Group Holdings, missed a debt payment this week. Fantasia is not as big as the troubled Evergrande property firm, but there are growing concerns about a contagion effect in the financial markets. There are lingering worries about supply-chain bottlenecks that have many businesses unable to obtain their products in a timely fashion. That matter and rapidly rising energy prices have helped to stoke price inflation fears and even notions of a return of "stagflation" that gripped world economies in the early 1980s. These elements are likely to at least limit the downside in safe-haven gold and silver in the near term.
The key outside markets today see the U.S. dollar index modestly up and not far below last week's 12-month high. Nymex crude oil futures are up and hit a nearly seven-year high of $79.48 a barrel today. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.524%.
Technically, December gold futures bears have the overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week's high of $1,771.50 and then at $1,775.00. First support is seen at this week's low of $1,747.70 and then at $1,737.50. Wyckoff's Market Rating: 3.5
December silver futures bears have the solid overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at this week's high of $22.805 and then at $23.00. Next support is seen at this week's low of $22.29 and then at $22.00. Wyckoff's Market Rating: 2.0.
December N.Y. copper closed down 450 points at 419.35 cents today. Prices closed near mid-range today. The copper bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 447.15 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 this week's high of 430.30 cents and then at 435.00 cents. First support is seen at today's low of 415.10 cents and then at 410.00 cents. Wyckoff's Market Rating: 5.0.