Gold sees modest short covering, bargain buying

Gold prices are firmer in midday U.S. trading Wednesday, on a routine upside price correction from recent selling pressure. Short covering in the futures market and some perceived bargain buying in the cash market are featured. The U.S. dollar index is trading slightly down and near its daily low, which also gave the metals market bulls a bit of encouragement. However, rising U.S. Treasury bond yields at mid-week has limited buying interest in the metals. October gold futures were last up $4.90 at $1,756.30. September Comex silver futures were last down $0.021 at $19.005 an ounce.

U.S. stock indexes are higher at midday. The marketplace is awaiting the late-week Jackson Hole, Wyoming Federal Reserve annual symposium that begins Thursday and includes a speech from Fed Chairman Jerome Powell Friday morning. Past Jackson Hole Fed meetings have significantly moved markets. Markets are expecting Powell to lean hawkish on U.S. monetary policy and on the Fed’s fight against inflation.

Gareth Soloway's Trading Tips: A Guide from a Master Trader

The key outside markets today see Nymex crude oil prices lower and trading around $93.00 a barrel. The U.S. dollar index is slightly lower at midday, after hitting a 20-year high on Tuesday. Meantime, the yield on the 10-year U.S. Treasury note is fetching 3.109%. Bond yields have been on the rise recently.

Technically, October gold futures bears still have the firm overall near-term technical advantage. 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 the July low of $1,686.30. First resistance is seen at today’s high of $1,759.70 and then at 1,775.00. First support is seen at today’s low of $1,745.50 and then at this week’s low of $1,730.40. Wyckoff's Market Rating: 2.5.

September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $20.87. The next downside price objective for the bears is closing prices below solid support at the July low of $18.01. First resistance is seen at this week’s high of $19.155 and then at $19.50. Next support is seen at this week’s low of $18.605 and then at $18.35. Wyckoff's Market Rating: 2.0.

September N.Y. copper closed down 460 points at 364.95 cents today. Prices closed nearer the session low today. The copper bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 335.00 cents. First resistance is seen at this week’s high of 373.15 cents and then at 380.00 cents. First support is seen at this week’s low of 360.40 cents and then at last week’s low of 354.20 cents. Wyckoff's Market Rating: 6.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley