Gold, silver slightly up amid weaker USDX, higher crude oil
Gold and silver prices are slightly higher but well off daily highs in midday U.S. trading Tuesday. The metals are getting a slight lift from a lower U.S. dollar index and higher crude oil prices on this day. U.S. Treasury yields have down-ticked today and that's also limiting selling interest in the safe-haven metals. December gold was last up $2.20 at $1,741.80 and December silver was up $0.178 at $21.05.
Global stock markets were mixed overnight. U.S. stock indexes are higher at midday. Risk appetite remains subdued so far this week as Covid cases surge in China. News reports are calling China's largest city, Beijing, a "ghost town." Some analysts are saying 20% of China's economy is being negatively impacted by the Covid lockdowns.
Wednesday will be the busiest day for U.S. economic data, including the minutes from the last FOMC monetary policy meeting, to be released in the early afternoon. A Barron's headline today reads: "Don't tune out for the holidays; the Fed minutes will be a must watch." The minutes may contain fresh clues on the future path and timing of Fed monetary policy.
Turkey, Uzbekistan continue to buy gold, speculation grows that China is buying anonymously
The key outside markets today see the U.S. dollar index lower on a corrective pullback from solid gains posted Monday. Nymex crude oil prices are firmer and trading around $81.50 a barrel. The crude oil market was roiled Monday by reports Saudi Arabia is contemplating raising its crude oil production—only to have Saudi officials deny the report. Oil prices fell to an 11-month low shortly after the news reports hit the wires. The yield on the benchmark U.S. 10-year Treasury note is presently 3.773%.
Live 24 hours gold chart [Kitco Inc.]
Technically, the gold futures bulls and bears are on a level overall near-term technical playing field. A fledgling price uptrend on the daily bar chart has stalled out. Bulls' next upside price objective is to produce a close above solid resistance at the November high of $1,791.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,675.00. First resistance is seen at this week's high of $1,755.00 and then at $1,770.00. First support is seen at this week's low of $1,733.90 and then at $1,725.00. Wyckoff's Market Rating: 5.0.
The silver bulls have the slight overall near-term technical advantage. Prices are in a choppy 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $22.38. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today's high of $21.37 and then at $21.80. Next support is seen at this week's low of $20.60 and then at $20.00. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed up 525 points at 362.40 cents today. Prices closed near mid-range. The copper bears have the overall near-term technical advantage. A six-week-old uptrend on the daily bar chart has stalled out. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 396.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at today's high of 366.90 cents and then at 370.00 cents. First support is seen at this week's low of 354.75 cents and then at 350.00 cents. Wyckoff's Market Rating: 4.0.
By Jim Wyckoff
For Kitco News
David