Gold, silver rebound as USDX dips, crude gains
Gold and silver prices are moderately higher in midday U.S. trading Thursday. The precious metals bulls stepped in to buy the dip in prices following some technical selling pressure recently. The key outside markets were mostly friendly for gold and silver today. The U.S. dollar index was a bit weaker and crude oil prices rallied modestly. However, U.S. Treasury yields did up-tick today, to help cap gains in gold and silver. December gold was last up $9.30 at $1,967.00. December silver was last up $0.272 at $23.005.
The marketplace will be monitoring Fed Chairman Jerome Powell's speech at 2:00 p.m. EST, at a forum of the International Monetary Fund. It is not known if Powell will dig into the specifics of U.S. monetary policy. He spoke on Wednesday but made no significant, market-sensitive remarks.
U.S. stock indexes are slightly up near midday. Risk appetite has slowly crept back into the general marketplace amid no recent major escalation of violence in the Israel-Hamas war. However, my bias is still that this Middle East situation will deteriorate again to the point of roiling markets—and probably sooner rather than later.
In overnight news, China's consumer and producer inflation slipped into deflationary territory last month, heightening expectations the world's second-largest economy needs more government stimulus. China's October consumer price index fell 0.2%, year-on-year, while the producer price index was down 2.6% in the same period. Food prices fell 4.0% in October, led by a 30% drop in pork prices. Pork is a main consumer staple in China. This latest China data is a bearish element for the metals markets, as China is a major metals consumer.
Watch out for one more rate hike, recession 'freight train' hurtling towards us – Adrian Day
The key outside markets today see the U.S. dollar index just a bit weaker. Nymex crude oil prices are higher and trading around $76.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.549%.
Technically, December gold futures prices hit a three-week low early on today. The bulls have the slight overall near-term technical advantage but need to show more power soon to keep it. 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 Wednesday's high of $1,977.50 and then at $1,985.20. First support is seen at today's low of $1,948.20 and then at $1,935.00. Wyckoff's Market Rating: 5.5
December silver futures bears have the slight overall near-term technical advantage. Prices are starting to trend lower on the daily bar chart. 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 $23.25 and then at $23.50. Next support is seen at this week's low of $22.375 and then at $22.00. Wyckoff's Market Rating: 4.5.
December N.Y. copper closed up 135 points at 365.15 cents today. Prices closed nearer the session high today and hit a two-week low early on. 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 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 this week's high of 372.55 cents and then at 375.00 cents. First support is seen at today's low of 361.35 cents and then at 358.00 cents. Wyckoff's Market Rating: 3.0.
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By
Jim Wyckoff
For Kitco News
David