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Gold, silver back off on profit taking by futures traders

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(Kitco News) - Gold and silver prices are weaker in midday U.S. trading Tuesday, on some routine profit-taking pressure from the shorter-term futures traders and on a corrective pullback from recent good gains. Gold prices hit a three-month high and silver prices a five-month high early on today. December gold was last down $5.00 at $1,771.90 and December silver was down $0.568 at $21.545.

The U.S. data point of the day saw the producer price index report for October come in at up 8.0%, year-on-year, compared to a rise of 8.3% that was the consensus forecast. The month-on-month figures showed a rise of 0.2% from September, compared to a rise of 0.4% that was expected. The core PPI reading was unchanged in October, compared to expectations for a rise of 0.3%. Other components of the PPI report were also a bit cooler than expected. The U.S. dollar index dropped sharply right after that news, while U.S. Treasury yields fell. However, the USDX did claw back most of its losses and bond yields did inch back up from earlier highs, in midday trading. The benchmark U.S. Treasury 10-year note yield is presently fetching 3.824%.

U.S. stock indexes are solidly higher at midday and hit fresh for-the-move highs. The keener risk appetite in the marketplace today was also a negative for the safe-haven metals. Global stock markets were steady to mixed overnight. Trader and investor risk attitudes were already more upbeat Tuesday, before the PPI report, on notions the Federal Reserve will at its December meeting start to back off on its aggressive tightening of U.S. monetary policy. Monday’s face-to-face meeting between U.S. President Biden and Chinese leader Xi Jinping also has boosted hopes the world’s two largest economies can become less adversarial. Also positive for the marketplace are recent moves by China to ease up on its Covid restrictions.

The other key outside market today sees Nymex crude oil prices slightly up and trading around $86.00 a barrel.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures prices hit a three-month high early on today. The gold futures bulls have the slight overall near-term technical advantage. Bulls still have some 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 today’s high of $1,791.80 and then at $1,800.00. First support is seen at this week’s low of $1,755.80 and then at $1,750.00. Wyckoff's Market Rating: 5.5.

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures prices hit a 4.5-month high early on today. The silver bulls have the overall near-term technical advantage. 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 $22.00 and then at today’s high of $22.38. Next support is seen at this week’s low of $21.37 and then at $21.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed down 310 points at 380.30 cents today. Prices closed near the session low and saw some profit taking after hitting a four-month high on Monday. 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 388.90 cents and then at this week’s high of 396.00 cents. First support is seen at 375.00 cents and then at 370.00 cents. Wyckoff's Market Rating: 6.0.

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.