Sharp gains for gold on better safe-haven bidding
Gold prices are solidly higher and hit a six-week high in midday U.S. trading Wednesday. Silver prices are slightly up and scored a three-week high. Keener risk aversion in the marketplace as the Middle East violence is flaring up has traders and investors seeking out safe-haven assets like gold and silver. December gold was last up $26.70 at $1,962.40 and December silver was up $0.016 at $23.04.
Risk aversion has up-ticked at mid-week after a bombing at a hospital in Gaza has reportedly killed over 500 people. Hamas blamed an Israel air strike, while Israel blamed an errant Hamas missile. Reports said U.S. military intelligence says the explosion was caused by a Palestinian military group. Reads a Barrons headline today: “Rate fears, bond yields, war; market concern grows.”
U.S. stock indexes are lower at midday.
In overnight news, China got some mixed economic data today. China's third-quarter GDP came in at up 4.9%, year-on-year, helped by resilient consumer spending. However, China's third-quarter GDP came in below the second quarter's reading of up 6.3%, year-on-year. That puts the world's second-largest economy on course to hit an annual GDP target of around 5% for 2023, Bloomberg reported. GDP got a boost from strong retail sales in September that posted the biggest increase since May. On the downside, China property investment contraction accelerated during September. Home sales continued to decline and construction of new homes dropped almost 24% in the first nine months of the year. Funding for property development dropped 13.5%, year-on-year.
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Off the record: silver looks better than gold in 2024 according to LBMA survey
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are higher and trading around $88.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching around 4.85%.
Technically, December gold futures prices hit a six-week high today. Recent price action suggests that a market bottom is in place. The bulls have gained the slight overall near-term technical advantage. A five-month-old price downtrend on the daily bar chart has been negated and prices are now trending higher. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,875.00. First resistance is seen at today's high of $1,975.80 and then at the August high of $1,980.20. First support is seen at $1,950.00 and then at today's low of $1,935.90. Wyckoff's Market Rating: 5.5.
December silver futures prices hit a three-week high early on today. The silver bulls have the slight overall near-term technical advantage. A three-month-old downtrend is in place on the daily bar chart has been negated and prices are now trending up. Recent price action suggests a market bottom is in place. 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 $21.60. First resistance is seen at today's high of $23.49 and then at $23.80. Next support is seen at today's low of $22.84 and then at this week's low of $22.535. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed up 25 points at 358.10 cents today. Prices closed nearer the session low today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, 2.5-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at today's high of 363.05 cents and then at 367.45 cents. First support is seen at this week's low of 353.15 cents and then at 350.00 cents. Wyckoff's Market Rating: 1.5.
By
Jim Wyckoff
For Kitco News
Tim Moseley