(Kitco News) - Gold and silver prices are suffering extreme selling pressure near midday Tuesday. Panic long liquidation and margin-call selling in the futures markets are featured from the shorter-term speculators. Better risk appetite in the general marketplace early this week is also bearish for the safe-haven metals. The U.S. stock indexes have rallied back close to their recent record highs. December gold was last down $215.00 at $4,143.00. December silver prices were down $3.50 at $47.85.
On Monday, would-be bargain hunters were featured in gold and silver as they stepped in to buy last Friday’s big price dips. Gold futures notched a record high of $4,398.00 an ounce Monday. However, daily price volatility in gold and silver futures markets has turned extreme. This is bearish and suggests a climaxing phase of the major bull market runs. Commodity market traders are keeping a closer eye on the gold and silver markets early this week. Their extreme price volatility could spill over into some higher price volatility in other futures markets. There’s an old market saying during panic-type market moves that goes like this: “If you can’t sell what you want, you sell what you can.” Spillover selling pressure from the steep losses in gold and silver has hit the grain futures markets, but not seriously.
The key outside market today see the U.S. dollar index firmer. Crude oil prices are slightly up and trading around $57.75. The yield on the benchmark 10-year U.S. Treasury note is presently around 3.9%.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, December gold futures are fading badly and rapidly. Bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $4,398.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at $4,200.00 and then at $4,250.00. First support is seen at today’s low of $4,093.00 and then at $4,000.00. Wyckoff's Market Rating: 6.0.
The silver market has seen a bearish “key reversal” down occur last Friday, which is one chart clue that a market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at the contract/record high of $53.765. The next downside price objective for the bears is closing prices below solid support at $46.70. First resistance is seen at $49.00 and then at $50.00. Next support is seen at today’s low of $47.12 and then at $46.70. Wyckoff's Market Rating: 6.0.
(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.
I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
