Gold showing early signs market bottom in place
(Kitco News) - Gold prices are modestly higher in midday U.S. trading Monday, but importantly held Friday’s strong gains that included a technically bullish weekly high close that is one chart clue that a market bottom is in place. Silver prices are firmer and hit a four-week high today. A lower U.S. dollar index was a bullish daily factor for the metals markets to start the trading week. December gold was last up $4.70 at $1,681.40 and December silver was up $0.161 at $20.945.
Global stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday. It will be another busy week of corporate earnings reports. However, focus now is on the U.S. mid-term elections on Tuesday.
In overnight news, China's exports in October fell 0.3%, year-on-year, the worst performance since May of 2020. China's imports were down 0.7% in the same period. Over the weekend Chinese health officials said the are sticking with their "zero-Covid" policies despite widespread rumors to the contrary.
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The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are firmer, hit a nine-week high and are trading around $93.25 a barrel. The 10-year U.S. Treasury note is yielding around 4.1%.
Technically, the gold futures bears have the overall near-term technical advantage. However, a price downtrend on the daily bar chart has been negated and last Friday saw a bullish weekly high close. These are technical clues that a market bottom is in place. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at last week's high of $1,686.40 and then at $1,700.00. First support is seen at today's low of $1,670.00 and then at $1,650.00. Wyckoff's Market Rating: 2.5.
December silver futures prices hit a four-week high today. The silver bulls have the overall near-term technical advantage. Prices are in a choppy two-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $21.31. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today's high of $21.08 and then at $21.31. Next support is seen at today's low of $20.435 and then at $20.00. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed down 995 points at 358.70 cents today. Prices closed near the session low today. The copper bears have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. 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 September low of 324.30 cents. First resistance is seen at today's high of 366.05 cents and then at last week's high of 370.85 cents. First support is seen at 350.00 cents and then 340.00 cents. Wyckoff's Market Rating: 4.0.