(Kitco News) – Gold and silver prices are lower in midday U.S. trading Monday. Both markets dropped to three-month lows today as their near-term technical postures have deteriorated significantly just recently. That’s inviting some new chart-based sellers into the futures markets. December gold futures were last down $6.10 an ounce at 1,456.80. December Comex silver prices were last down $0.033 at $16.79 an ounce.
U.S. stock indexes are mixed at midday but not far below their recent record highs. The bull market run in the U.S. stock market is a bearish factor that is keeping money from flowing into the safe-haven metals.
The U.S. government is closed today, as is the cash U.S. Treasury market, for the Veterans Day holiday.
The civil unrest in Hong Kong escalated over the weekend. That has Asian equity markets more uneasy. One protester was reportedly shot by police and is in serious condition. A further escalation of this situation would likely prompt some demand for safe-haven gold and silver.
There were no new developments on the U.S.-China trade war front over the weekend. President Trump on Friday sounded a bit less upbeat on the situation than news reports were suggesting late last week. Still, Trump said the trade talks were going “very nicely” but added the U.S. is not rolling back all of the import tariffs on Chinese products.
The key “outside markets” today see the U.S. dollar index lower. Nymex crude oil prices are lower and trading around $57.00 a barrel.
There was no U.S. economic data released Monday as the government was closed for a holiday.
Technically, December gold futures prices were near mid-range at midday today. The bears have the overall near-term technical advantage as prices have been trending lower for two months. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,425.00. First resistance is seen at today’s high of $1,477.40 and then at $1,475.00. First support is seen at today’s low of $1,448.90 and then at $1,440.00. Wyckoff’s Market Rating: 4.0
December silver futures prices were near mid-range and hit another three-month low today. The silver bears have the overall near-term technical advantage. Prices have been trending lower for two months. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at $17.095. Next support is seen at today’s low of $16.63 and then at $16.50. Wyckoff’s Market Rating: 4.0.
December N.Y. copper closed down 175 points at 266.45 cents today. Prices closed nearer the session low today on profit taking from recent gains. The copper bulls have the overall near-term technical advantage as prices have been trending up for six weeks. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the July high of 280.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at today’s high of 269.00 cents and then at last week’s high of 273.00 cents. First support is seen at 265.00 cents and then at 262.80 cents. Wyckoff’s Market Rating: 6.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
