Gold pressured on technical selling, drop in crude oil
Gold prices are lower in midday U.S. trading Wednesday. The sellers are in control today as crude oil prices have slumped to a 3.5-month low and as the near-term technical posture for the yellow metal has deteriorated this week—prompting some chart-based selling from the speculators. Silver is trading higher on some perceived bargain hunting. December gold was last down $13.30 at $1,960.20. December silver was last up $0.246 at $22.83.
U.S. stock indexes are weaker at midday. Risk appetite is creeping back into the general marketplace amid no recent major escalation in the Israel-Hamas war. That's also a negative for the safe-haven metals bulls.
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The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are lower and trading around $75.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching around 4.5%.
Technically, December gold futures prices hit a three-week low today. The bulls have the slight overall near-term technical advantage but need to show fresh power very soon to keep it. A four-week-old uptrend on the daily bar chart has been negated. Bulls' next upside price objective is to produce a close above solid resistance at the October high of $2,019.70. 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 $1,977.50 and then at $1,985.20. First support is seen at today's low of $1,956.80 and then at $1,950.00. Wyckoff's Market Rating: 5.5
December silver futures prices hit a three-week low today. The silver bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $23.88. The next downside price objective for the bears is closing prices below solid support at the October low of $20.85. First resistance is seen at $23.00 and then at $23.50. Next support is seen at today's low of $22.375 and then at $22.00. Wyckoff's Market Rating: 4.0.
December N.Y. copper closed down 425 points at 363.65 cents today. Prices closed near the session low today. The copper bears have the overall near-term technical advantage. A fledgling price uptrend on the daily bar chart was negated today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 380.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 351.95 cents. First resistance is seen at 367.50 cents and then at this week's high of 372.55 cents. First support is seen at 360.00 cents and then at 355.00 cents. Wyckoff's Market Rating: 3.0.
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By
Jim Wyckoff
For Kitco News
Tim Moseley