Gold, silver down slightly in quieter markets day
(Kitco News) - Gold and silver prices are slightly down in lackluster midday U.S. trading Monday. It’s a quieter start to the trading week and the metals market traders are awaiting new fundamental information to help drive the markets. December gold futures were last down $2.50 at $1,765.70. December Comex silver was last down $0.069 at $23.28 an ounce.
Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are mixed at midday. Risk aversion is just a bit keener to start the trading week, amid rising energy costs and increasing worries about stagflation. Nymex crude oil prices hit a seven-year high of $83.87 a barrel overnight. China’s third-quarter gross domestic product growth slowed to 4.9%, year-on-year, lower than expectations and the slowest pace of growth in a year, hurt by power shortages and supply chain bottlenecks. China’s GDP rose 7.9% in the second quarter. Meantime, the governor of the Bank of England said Sunday the BOE will have to act to curb inflationary pressure. He said inflation in the U.K. had already risen and would rise further, to warrant action.
The other key outside market today sees the U.S. dollar index slightly down. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.609%.
Technically, December gold futures bulls have the slight overall near-term technical advantage amid a price uptrend barely in place on the daily bar chart. Bulls need to show fresh power soon to keep it alive. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $1,801.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,721.10. First resistance is seen at $1,775.00 and then at $1,7820.40. First support is seen at today’s low of $1,760.30 and then at $1,750.00. Wyckoff's Market Rating: 5.5
December silver futures bears have the overall near-term technical advantage. However, recent gains have started a price uptrend on the daily chart and also suggest a market bottom is in place. 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 $22.00. First resistance is seen at today’s high of $23.495 and then at last week’s high of $23.645. Next support is seen at $23.00 and then at $22.75. Wyckoff's Market Rating: 4.5.
December N.Y. copper closed down 85 points at 472.10 cents today. Prices closed nearer the session low today and hit a five-month high early on. The copper bulls have the solid overall near-term technical advantage. Prices are in a steep four-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the May high of 487.05 cents. The next downside price objective for the bears is closing prices below solid technical support at 440.00 cents. First resistance is seen at today’s high of 482.30 cents and then at 487.05 cents. First support is seen at today’s low of 468.55 cents and then at 460.00 cents. Wyckoff's Market Rating: 8.0.