Mild price losses for gold, silver, on routine consolidation
(Kitco News) - Gold and silver prices are a bit weaker in early U.S. trading Tuesday, on some normal backing and filling on the charts following recent gains. Both metals’ bulls are comfortable at present, as near-term price uptrends are in place and the path of least resistance is sideways to higher. December gold futures were last down $1.80 at $1,805.00. December Comex silver was last down $0.122 at $24.47 an ounce.
Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to higher openings when the New York day session begins, with the S&P 500 stock index hitting another record high overnight. 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 slightly down. Crude oil prices are near steady and trading around $83.65 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%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail sales reports, the monthly house price index, the S&P-Case-Shiller house indexes, the Richmond Fed business survey, the consumer confidence index, and new residential sales.
Technically, December gold futures bulls have the overall near-term technical advantage as prices are in a four-week-old uptrend on the daily 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 this week’s high of $1,811.50 and then at the October high of $1,815.50. First support is seen at $1,800.00 and then at this week’s low of $1,793.00. Wyckoff's Market Rating: 6.5
The silver bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing December futures 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 the overnight low of $24.31 and then at $24.00. Wyckoff's Market Rating: 6.5.