Gold rallies on short covering, perceived value buying
Gold prices are posting decent gains and silver prices are slightly up in midday U.S. trading Monday. Short covering by the futures traders is featured in gold, along with some perceived bargain hunting. The silver market is seeing some technical buying amid friendly near-term charts. December gold was last down up $13.30 at $1,953.30 and December silver was up $0.137 at $24.72.
This is the unofficial last week of summer for the U.S. Look for the marketplace to become more active next Tuesday, following the three-day U.S. Labor Day weekend holiday. This is a big week for U.S. economic reports, so traders and investors are likely to become at least a bit more tuned in as the week progresses.
Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are modestly higher at midday. News that China cut a key tax rate and pledged to shore up its capital markets boosted trader and investor attitudes in Asia.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are slightly higher and trading around $80.00 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching 4.214%.
The U.S. economic data pace picks up rapidly on Tuesday and it’s a big data week, including the employment situation report on Friday.
Technically, December gold futures bears still have the overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart has been negated. 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 $1,900.00. First resistance is seen at $1,963.50 and then at $1,975.00. First support is seen at today’s low of $1,940.10 and then at Friday’s low of $1,931.00. Wyckoff's Market Rating: 3.5
December silver futures bulls have the overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $25.82. The next downside price objective for the bears is closing prices below solid support at the August low of $22.585. First resistance is seen at $25.00 and then at $25.345. Next support is seen at Friday’s low of $24.31 and then at $24.00. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed up 95 points at 379.35 cents today. Prices closed nearer the session low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 403.75 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 367.00 cents. First resistance is seen at today’s high of 382.90 cents and then at last week’s high of 384.25 cents. First support is seen at Friday’s low of 376.55 cents and then at last week’s low of 372.15 cents. Wyckoff's Market Rating: 3.5.
By
Jim Wyckoff
David