Gold, silver see routine downside corrections in existing price uptrends
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(Kitco News) - Gold and silver prices are lower at midday Tuesday, on some normal backing and filling on the charts following recent gains. Both metals’ bulls remain comfortable at present, as near-term price uptrends are in place and the overall path of least resistance is sideways to higher. December gold futures were last down $14.40 at $1,792.40. December Comex silver was last down $0.487 at $24.11 an ounce.
The U.S. stock indexes are firmer at midday, with the S&P 500 stock index hitting another record high overnight. The keener risk appetite early this week is also a negative for the safe-haven metals. Corporate earnings reports are front and center for stock market traders, at present. Keep in mind that traders and investors are fickle. This week focus is on positive corporate earnings data that is pushing the stock indexes higher. Come next week, inflation concerns that include rapidly rising energy costs and global shipping constrictions may have the marketplace in a more somber mood.
The key outside markets today see the U.S. dollar index higher—also a negative for the metals. Crude oil prices are higher and trading around $85.00 a barrel. Don’t be surprised if continually rising energy prices heading into the Northern Hemisphere winter start to bite at trader and investor sentiment. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.64%. For perspective, the yield on the 10-year German bund is presently -0.107% and the U.K. 10-year gilt is at 1.147%.
Technically, December gold futures bulls still have the overall near-term technical advantage amid a four-week-old price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,836.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at $1,800.00 and then at this week’s high of $1,811.50. First support is seen at today’s low of $1,783.00 and then at $1,775.00. Wyckoff's Market Rating: 6.0
December silver futures bulls still have the overall near-term technical advantage. Prices are 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 $23.00. First resistance is seen at this week’s high of $24.695 and then at the September high of $24.945. Next support is seen at today’s low of $23.925 and then at $23.615. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed down 490 points at 447.85 cents today. Prices closed near the session low today. The copper bulls have the overall near-term technical advantage but have faded recently. Prices are still in a four-week-old uptrend on the daily bar chart, but now just barely. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 482.30 cents. The next downside price objective for the bears is closing prices below solid technical support at 430.00 cents. First resistance is seen at this week’s high of 456.85 cents and then at 460.00 cents. First support is seen at last week’s low of 446.10 cents and then at 440.00 cents. Wyckoff's Market Rating: 6.0.