Gold, silver higher as bulls step in to buy early dips
Gold and silver prices are firmer in midday U.S. trading Monday, with gold scoring a 2.5-month high. Bullish traders stepped in to buy the early price weakness today. However, gains in the precious metals were limited by a rebound in the U.S. dollar index and rising U.S. Treasury yields to start the trading week. December gold was last up $4.00 at $1,773.40 and December silver was up $0.368 at $22.03.
U.S. stock indexes are mixed at midday, on corrective price action following recent strong gains. The S&P 500 stock index on Friday hit a two-month high and the Nasdaq index notched a six-week high. The S&P 500 is trending higher on the daily bar chart, to suggest that a market bottom is in place and that prices can continue to work sideways to higher in the near term.
Traders early this week will keep an eye on the Group of 20 meeting taking place in Bali. U.S. President Joe Biden and Chinese Premiere Xi Jinping met at the confab. China’s government over the weekend took more stimulative measures to reinvigorate its listing property sector. China has also taken steps recently to ease up on its Covid restrictions that continue to hamper the world’s second-largest economy.
The key outside markets today see Nymex crude oil prices solidly lower and trading around $86.75 a barrel. The U.S. dollar index is higher on a corrective bounce after hitting a nearly three-month low on Friday. The benchmark U.S. Treasury 10-year note yield is presently fetching 3.869%.
There was no major U.S. economic data released Monday. The pace picks up quickly Tuesday, including the release of the producer price index report for October, which is seen coming in at up 0.4% from September and compares to the rise of 0.4% in the September PPI report.
Technically, December gold futures prices hit a 2.5-month high today. The gold futures bulls have the slight overall near-term technical advantage. Bulls have momentum and are working on a fledgling price uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,618.30. First resistance is seen at $1,800.00 and then at the August high of $1,824.60. First support is seen at $1,750.00 and then at $1,738.70. Wyckoff's Market Rating: 5.5
December silver futures prices last Friday hit a 4.5-month high. The silver bulls have the overall near-term technical advantage and have momentum. Prices are in a choppy 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at last week’s high of $22.16 and then at $22.50. Next support is seen at today’s low of $21.37 and then at $21.00. Wyckoff's Market Rating: 6.5.
December N.Y. copper closed down 835 points at 382.95 cents today. Prices closed nearer the session low and hit a four-month high early on today. The copper bulls have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at today’s high of 396.00 cents and then at 400.00 cents. First support is seen at 380.00 cents and then at 370.00 cents. Wyckoff's Market Rating: 6.0.