Gold, silver pressured at mid-week by higher USDX, bond yields, lower oil

Gold and silver prices are lower at midday Wednesday. Rising U.S. Treasury yields, a firmer U.S. dollar index and lower crude oil prices at mid-week are squelching buying interest in the precious metals. An up-tick in trader/investor risk appetite today is also bearish for the safe-haven metals. October gold futures were last down $14.50 at $1,765.30. September Comex silver futures were last down $0.234 at $19.905 an ounce.

Global stock markets were steady to weaker overnight. U.S. stock indexes are solidly higher at midday. Trader and investor anxiety has somewhat receded as U.S. House Speaker Nancy Pelosi visited Taiwan Tuesday evening without incident—at least not yet. China has vowed retaliation over her visit and plans on conducting a large-scale military exercise around Taiwan.

U.S. Treasury yields have up-ticked this week as U.S. Federal Reserve officials this week reiterated they plan to keep raising U.S. interest rates to choke off problematic price inflation. The yield on the 10-year U.S. Treasury note is fetching around 2.75%.

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The key outside markets today see Nymex crude oil prices solidly lower and trading around $91.50 a barrel. An OPEC-plus meeting Wednesday saw the group raise its collective production by only 100,000 barrels per day. The U.S. dollar index is higher at midday.

Technically, October gold futures bears have the overall near-term technical advantage. However, a fledgling price uptrend is still in place on the daily bar chart to suggest a market bottom is in place. 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 $1,720.00. First resistance is seen at today’s high of $1,779.10 and then at this week’s high of $1,794.80. First support is seen at today’s low of $1,759.70 and then at $1,750.00. Wyckoff's Market Rating: 3.0.

September silver futures bears have the overall near-term technical advantage. However, a price downtrend has been negated to suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.51 and then at $20.75. Next support is seen at today’s low of $17.75 and then at $19.40. Wyckoff's Market Rating: 3.0.

September N.Y. copper closed down 550 points at 346.45 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. However, a steep six-week-old price downtrend on the daily bar chart has been negated and prices are starting to trend up. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 313.15 cents. First resistance is seen at this week’s high of 359.70 cents and then at 365.00 cents. First support is seen at today’s low of 344.65 cents and then at 335.00 cents. Wyckoff's Market Rating: 3.0.

By Jim Wyckoff

For Kitco News

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