Gold price sinks on strong greenback, rising U.S. Treasury yield

Gold and silver prices are down in midday U.S. trading Wednesday. The precious metals are being punished by a strong U.S. dollar index and rising U.S. Treasury yields. These two bearish elements continue to supersede any other potentially bullish factors for the metals. December gold hit a three-week low today and was last down $19.40 at $1,636.60 and December silver was down $0.235 at $18.365.

U.S. stock indexes are mixed at midday. Risk appetite is a bit more upbeat so far this week. U.S. corporate earnings reports are so far coming in better than expectations despite recession fears.

The Crypto Winter will end once innovation and these other key developments reignite – Sean Mackay

The key outside markets today see the U.S. dollar index solidly higher and not too far below its recent 20-year high. Nymex crude oil prices are modestly up and trading around $83.60 a barrel. The U.S. Treasury 10-year note yield is presently fetching 4.065%.

Technically,the gold futures bears have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at today’s high of $1,659.50 and then at this week’s high of $1,674.30. First support is seen at $1,630.00 and then at $1,622.20. Wyckoff's Market Rating: 1.5

The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at today’s high of $18.755 and then at $19.00. Next support is seen at this week’s low of $18.155 and then at $18.00. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 280 points at 333.35 cents today. Prices closed nearer the session low and hit a three-week low today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 369.25 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at 340.00 cents and then at this week’s high of 346.75. First support is seen at 330.00 cents and then at the September low of 324.30 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley