AM-PM Roundup
Gold weaker on surging U.S. dollar, rising U.S. Treasury yields
(Kitco News) - Gold prices are moderately down in midday U.S. trading Tuesday, while silver prices are just a bit firmer. A strong U.S. dollar index that hit a 20-year high today and a sharp rise in U.S. Treasury yields to start the U.S. trading week are bearish outside market forces working against the metals markets. October gold was last down $7.60 at $1,705.40 and December silver was up $0.079 at $17.96.
The greenback rose sharply as the Euro currency slumped after Russia said it won't reopen its main natural gas pipeline from Russia into Europe. In other news, OPEC-plus decided to cut its collective crude oil production by 100,000 barrels per day starting in October, in an effort to boost prices.
The Reserve Bank of Australia Tuesday raised its main interest rate by 50 basis points to 2.35%, its highest since early 2015. The Bank of Canada rate decision will be Wednesday and the European Central Bank meets Thursday. Many expect the ECB to raise its main interest rate by 75 basis points.
The strict Covid lockdowns in China that have weakened the world's second-largest economy. China's central bank on Monday said it would ease monetary policy further by lowering the reserve requirement ratio for banks' foreign exchange reserves.
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Australia creates a crypto-monitoring task force and looks to exclude cryptos from foreign currency taxes |
In a compelling news story from the Wall Street Journal, the publication reported today that "investors around the world are piling into U.S. stocks, even as they brace for the prospect of a rocky autumn, because they say there's nowhere better to shelter from the turbulence in global markets." Said one market analyst in the story: "The U.S. looks the least challenged in a very challenging world." If that story is accurate, what were considered "risk assets" (stocks) now being sought as a safe-haven asset globally could be significantly bearish for the gold, silver and U.S. Treasury markets, which have been considered safe-haven assets for a very long time.
Global stock markets were mixed but mostly firmer overnight. U.S. stock indexes are lower at midday.
The other key outside market today sees Nymex crude oil prices near firmer and trading around $87.50 a barrel. The yield on the 10-year U.S. Treasury note is fetching 3.347%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, October gold futures bears have the solid overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at today's high of $1,727.00 and then at $1,740.00. First support is seen at $1,700.00 and then at last week's low of $1,689.80. Wyckoff's Market Rating: 1.5.
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
December silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $19.50. The next downside price objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today's high of $18.465 and then at $18.80. Next support is seen at today's low of $17.815 and then at last week's low of $17.40. Wyckoff's Market Rating: 1.5.
December N.Y. copper closed up 460 points at 346.00 cents today. Prices closed nearer the session high and hit a six-week low early on. Prices scored a bullish "outside day" up today. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 378.35 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at today's high of 350.00 cents and then at 360.00 cents. First support is seen at today's low of 336.10 cents and then at 330.00 cents. Wyckoff's Market Rating: 3.0.
