Gold, silver modestly up on short covering by futures traders
Gold and silver prices are a bit firmer in quieter midday U.S. trading Tuesday. Tepid short covering and some perceived light bargain hunting are featured in the two precious metals, after both recently hit five-month lows. December gold was last up $4.00 at $1,926.90 and September silver was up $0.15 at $23.485.
The marketplace is quieter amid the summertime doldrums and as traders and investors are looking ahead to the late-week annual Federal Reserve symposium held in Jackson Hole, Wyoming. This meeting usually produces some market-sensitive news from world central bankers’ comments, including Fed Chair Jerome Powell. Powell is scheduled to speak at the confab on Friday.
The key outside markets today see the U.S. dollar index higher, while Nymex crude oil futures prices are slightly down and trading around $79.75 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching 4.326%.
Technically, December gold futures bears have the firm overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,980.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today’s high of $1,933.20 and then at $1,938.20. First support is seen at this week’s low of $1,913.60 and then at $1,900.00. Wyckoff's Market Rating: 3.0.
September silver futures bears have the slight overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.75 and then at $24.00. Next support is seen at $23.00 and then at this week’s low of $22.71. Wyckoff's Market Rating: 4.5.
September N.Y. copper closed up 385 points at 375.70 cents today. Prices closed nearer the session high. The copper bears have the overall near-term technical advantage. Prices are still in a downtrend on the daily bar chart but now just barely. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 390.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 356.50 cents. First resistance is seen at today’s high of 377.75 cents and then at 380.00 cents. First support is seen at today’s low of 371.60 cents and then at this week’s low of 368.45 cents. Wyckoff's Market Rating: 2.5.
By
Jim Wyckoff
For Kitco News
Tim Moseley