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Gold, silver see profit-taking as USDX surges

Kitco News

(Kitco News) Gold prices are moderately lower in midday dealings Tuesday, after hitting a five-month high overnight. Silver pushed to a three-month high and also backed off. Both precious metals saw some routine profit-taking from the shorter-term futures traders, following recent good gains. A rally in the U.S. dollar index to a 15-month high today also worked against the metals market bulls. December gold was last down $10.20 at $1,856.70 and December Comex silver was last down $0.14 at $24.96 an ounce.

The U.S. economic data point of the day saw the October retail sales report come in just a bit hot at up 1.7% from September, compared to expectations of up 1.5%. Sales rose 0.7% in September from August. U.S. industrial production in October also came in higher than expected, at up 1.6% versus expectations of up 0.8%. Those reports had no big impact on the precious metals markets.

Global stock markets mostly firmer in overnight trading. The U.S. stock indexes are higher at midday. The stock indexes have been in a pause mode recently, as traders and investors weigh positive corporate earnings reports against rising inflation and rising Covid-19 cases in Asia, Europe and even in regions of the U.S.

U.S. President Joe Biden and China President Xi Jinping met in a conference call on Monday, with both sides saying the meeting was upbeat—even if not much tangible came out of the meeting.

In other overnight news, the Euro zone third-quarter GDP was reported up 2.2% from the second quarter and up 3.7%, year-on-year. Those numbers were in line with market expectations.

The monthly report from the International Energy Agency (IEA) said the end is in sight for crude oil’s rally, even as some oil traders and producers predict $100 oil. Demand growth remains robust, but supply is catching up and changes in oil stockpiles seen in October suggest “the tide might be turning,” according to the IEA. “The world oil market remains tight by all measures, but a reprieve from the price rally could be on the horizon.” The agency said production in the U.S. is ramping up in tandem with stronger oil prices. IEA kept its outlook for oil demand growth largely steady at 5.5 million barrels per day (bpd) for 2021 and 3.4 million bpd next year.

Bitcoin prices dropped over 5% at one point Tuesday.

The key outside markets today see the U.S. dollar index higher and hitting a 15-month high. Nymex crude oil prices are weaker and trading around $80.50 a barrel. The crude oil market bulls appear to have run out of gas and a market top could be in place. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.609%. The 10-year yield has recently spiked up.

Technically, December gold futures prices scored a bearish “outside day” down today after hitting a five-month high early on. Mild profit taking as featured. Bulls have the firm overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,879.50 and then at $1,885.00. First support is seen at $1,850.00 and then at $1,845.10. Wyckoff's Market Rating: 7.0

Live 24 hours gold chart [Kitco Inc.]

December silver futures prices hit a three-month high overnight. Mild profit taking was seen today. The silver bulls have the overall near-term technical advantage amid a six-week-old uptrend in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.13 an ounce. The next downside price objective for the bears is closing prices below solid support at the November low of $23.045. First resistance is seen at today’s high of $25.49 and then at $25.75. Next support is seen at $24.645 and then at $24.00. Wyckoff's Market Rating: 6.0.

Live 24 hours silver chart [ Kitco Inc. ]

December N.Y. copper closed down 680 points at 433.20 cents today. Prices closed nearer the session low today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 420.00 cents. First resistance is seen at today’s high of 444.25 cents and then at this week’s high of 448.90 cents. First support is seen at 430.00 cents and then at the November low of 427.80 cents. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.