Gold, silver rally on short covering, weaker U.S. data
(Kitco News) - Gold prices are solidly higher, hit a three-week high and are back above $2,000 in midday U.S. trading Tuesday. Silver prices are also posting good gains. The precious metals are seeing support from short covering by the futures traders and from some downbeat U.S. homes sales and leading economic indicators data released earlier this morning. Trader/investor notions of no more Federal Reserve interest rate increases on the horizon are also an underlying bullish element for the metals markets. Traders will closely examine this afternoon's minutes from the Fed's last FOMC meeting. December gold was last up $21.20 at $2,001.40. December silver was last up $0.256 at $23.87.
U.S. stock indexes are slightly lower at midday on mild corrective pullbacks after hitting multi-week highs this week. General marketplace attitudes are still upbeat following recent U.S. inflation reports that came in tamer than expectations. The consumer and producer price index reports for October fell into the camp of the U.S. monetary policy doves, who want to see the Federal Reserve halt its interest-rate-tightening cycle. More Fed watchers now believe the central bank will continue its pause on raising interest rates. No more Fed rate hikes would mean less chance for a U.S. economic recession, lower borrowing costs and better consumer demand for goods and services. Stock market bulls are now looking for a seasonal Santa Claus rally heading into the holidays.
U.S. trading activity will quickly taper off Wednesday, ahead of the U.S. Thanksgiving holiday on Thursday. Friday is typically one of the quietest U.S. trading days of the year.
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The key outside markets today see the U.S. dollar index near steady and hitting an 11-week low overnight. Nymex crude oil prices are lower and trading around $77.25 a barrel. Reports said OPEC is considering more oil-production cuts. The cartel will meet this coming weekend in Vienna. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.404%. A Dow Jones Newswires headline today reads: "Bonds could be the star asset class of 2024."
Technically, December gold futures prices hit a three-week high today. The bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the October high of $2,019.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,935.60. First resistance is seen at today's high of $2,009.80 and then at $2,019.70. First support is seen at today's low of $1,979.90 and then at this week's low of $1,967.20. Wyckoff's Market Rating: 6.0
December silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $21.925. First resistance is seen at the November high of $24.22 and then at $24.50. Next support is seen at this week's low of $23.30 and then at $23.00. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed down 65 points at 380.75 cents today. Prices closed nearer the session low today and hit a nine-week high early on. The copper bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 390.85 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 358.00 cents. First resistance is seen at today's high of 383.25 cents and then at 385.15 cents. First support is seen at this week's low of 372.55 cents and then at 370.00 cents. Wyckoff's Market Rating: 6.0.
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