Gold, silver near steady amid conflicting outside markets
(Kitco News) - Gold and silver prices are near steady in midday U.S. trading Wednesday. The precious metals are seeing selling interest limited by a slight dip in the U.S. dollar index and also in U.S. Treasury yields. However, buyers in gold and silver are being squelched by solidly lower crude oil prices on this day. December gold was last up $0.80 at $1,777.60 and December silver was down $0.028 at $21.49.
U.S. stock indexes are mixed near midday on routine corrective pullbacks after recent gains. After a tense Tuesday afternoon in the markets following reports that a Russian missile landed in NATO-member Poland and killed two people, the marketplace has mostly settled down after the U.S. said the missile was not likely fired by Russia but instead was likely fired by Ukraine in an attempt to shoot down a barrage of incoming Russian missiles.
Traders and investors remain upbeat after Tuesday’s U.S. producer price index report that came in cooler than expected and drove the major U.S. stock indexes to new for-the-move highs. Loosening of Covid restrictions in China and moves by the Chinese central bank to stimulate the world’s second-largest economy are also keeping an upbeat tone in the marketplace at mid-week. Gold and silver bulls are also looking at the aforementioned elements as being positive for better consumer and commercial demand for metals.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are solidly lower and trading around $84.25 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently 3.719%.
Technically, December gold futures prices hit a three-month high Tuesday. 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 this week’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.
December silver futures prices hit a 4.5-month high Tuesday. 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 this week’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 400 points at 377.95 cents today. Prices closed near mid-range today on more 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 Tuesday’s high of 388.90 cents and then at this week’s high of 396.00 cents. First support is seen at 369.25 cents and then at 360.00 cents. Wyckoff's Market Rating: 6.0.