(Kitco News) - Gold and silver prices are lower in midday U.S. trading Wednesday. Run-of-the-mill profit taking and weak long liquidation are featured from the shorter-term futures traders after gold this week hit a record high and silver a 14-year high. December gold was last down $17.50 at $3,798.20. December silver prices were down $0.333 at $44.275.
Remember that markets prices do not go straight up or straight down. Instead, price trends experience “corrections” opposite of the existing trend that are actually healthy for the existing trend to continue.
Both gold and silver markets this week have seen bullish upside technical “breakouts” from choppy trading ranges on the daily bar charts.
The powerful but mature bull market runs in gold and silver appear to be accelerating this week. That’s one early clue that from a time perspective, major market tops could come sooner rather than later. However, from a price perspective, there still could be much more room on the upside for gold and silver prices in the near term and during these potential acceleration phases of the mature bull markets, before they peter out for a while. It’s important to reiterate that markets action is important not only in price but also in time. For example, gold may well hit $4,000 an ounce, but will that occur in two weeks, two months or two years?
If gold and silver prices continue to show acceleration on the upside (significantly larger daily price bars on daily charts) then such would be one clue that both metals may be in their final climactic stages of their major bull-market moves.
The key outside markets today see the U.S. dollar index solidly up, while crude oil prices are up and trading around $64.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.10%.
Technically, December gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,650.00. First resistance is seen at this week’s high of $3,824.60 and then at $3,850.00. First support is seen at $3,750.00 and then at this week’s low of $3,718.10. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $41.00. First resistance is seen at this week’s high of $44.77 and then at $45.00. Next support is seen at $43.97 and then at this week’s low of $43.37. Wyckoff's Market Rating: 9.0.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, Gold prices are sharply up in early U.S. trading Monday and hit another record high. Silver prices are also up and notched another 14-year high. The powerful but mature bull market runs in gold and silver are accelerating. That’s one early clue that from a time perspective, major market tops could come sooner rather than later. However, from a price perspective, there still could be much more room on the upside for gold and silver prices during this acceleration phase of the mature bull markets, before they peter out for a while. December gold was last up $40.80 at $3,815.90. December silver prices were up $0.361 at $44.575.
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