Gold, silver see more corrective selling

(Kitco News) - Gold and silver prices are lower again in midday U.S. trading Tuesday, on continued corrective and consolidative price action following recent good gains. A solidly higher U.S. dollar index, sharply lower crude oil prices and an uptick in U.S. Treasury yields today are bearish daily outside market elements for the precious metals. December gold was last down $12.20 at $1,975.70. December silver was last down $0.195 at $23.01.

There has been no major military escalation in the Israel-Hamas war this week, which has allowed the marketplace to better focus on other matters and to inject a bit more risk appetite into the markets. That’s also bearish for the safe-haven metals. However, most veteran market watchers know this Middle East situation has the high potential to flare up very quickly and roil the marketplace. That thought should work to keep a floor under present gold and silver prices.

The key outside markets today see the U.S. dollar index sharply higher. Nymex crude oil prices are solidly lower and trading around $83.25 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching 4.859%.

Technically, December gold futures bulls still have the overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $2,009.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today’s high of $1,992.00 and then at $2,000.00. First support is seen at today’s low of $1,964.60 and then at $1,957.00. Wyckoff's Market Rating: 6.0.

December silver futures bulls have the overall near-term technical advantage. Prices are still in an uptrend on the daily bar chart but bulls need to show fresh power soon to keep it alive. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.05. The next downside price objective for the bears is closing prices below solid support at $21.60. First resistance is seen at this week’s high of $23.505 and then at last week’s high of $23.88. Next support is seen at today’s low of $22.805 and then at $22.555. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 355 points at 362.20 cents today. Prices closed nearer the session high today on short covering after hitting a 12-month low on Monday. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, three-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at today’s high of 363.95 cents and then at 367.45 cents. First support is seen at today’s low of 356.25 cents and then at this week’s low of 351.95 cents. Wyckoff's Market Rating: 2.0.

By

Jim Wyckoff

For Kitco News

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