Modest price gains for gold as bulls still have strength
Gold prices are mildly higher and silver mildly lower in midday U.S. trading Wednesday. Chart consolidation is the feature in both metals this week, but the bulls still hold the upper technical hand at present. December gold was last up $5.10 at $1,991.90. December silver was last down $0.111 at $23.005.
Trader and investor attention is no longer keenly fixated on the Israel-Hamas war. That means more normal market factors are in play. Today, the precious metals markets are seeing buying interest limited due to this week’s rally in the U.S. dollar index and an uptick in U.S. Treasury yields at mid-week.
Gold prices consolidating just below $2,000, caught between opposing forces
The key outside markets today see the U.S. dollar index slightly higher after solid gains Tuesday. Nymex crude oil prices are higher and trading around $85.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching 4.914%.
Technically, December gold futures bulls have the overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $2,009.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,920.00. First resistance is seen at $2,000.00 and then at $2,009.20. First support is seen at today’s low of $1,973.60 and then at this week’s low of $1,964.60. Wyckoff's Market Rating: 6.0
December silver futures bulls have the overall near-term technical advantage. Prices are still in an uptrend on the daily bar chart but bulls need to show fresh power soon to keep it alive. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.05. The next downside price objective for the bears is closing prices below solid support at $21.60. First resistance is seen at this week’s high of $23.505 and then at last week’s high of $23.88. Next support is seen at today’s low of $22.69 and then at $22.50. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed down 245 points at 359.95 cents today. Prices closed near the session low today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, three-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 364.90 cents and then at 367.45 cents. First support is seen at Tuesday’s low of 356.25 cents and then at this week’s low of 351.95 cents. Wyckoff's Market Rating: 2.0.
By
Jim Wyckoff
For Kitco News
Tim Moseley