Gold, silver bulls stabilize markets ahead of FOMC minutes

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(Kitco News) – Gold and silver futures prices are lower in midday U.S. trading Wednesday, but the cash markets show firmer prices. The reason is that the Comex gold and silver futures markets officially closed in early afternoon Tuesday—before the late-afternoon sell offs that were reflected in cash market prices Tuesday afternoon. So futures prices today are reflecting the Tuesday afternoon price pressure. The gold market sold off sharply Tuesday afternoon following President Trump’s tweet calling for an end to U.S. stimulus package discussions in Congress. Lately, the gold market has been acting more like a raw commodity than a safe-haven asset. The yellow metal on many days moves in tandem with the U.S. stock indexes—like Tuesday. December gold futures were last down $19.90 at $1,888.80 and December Comex silver was last down $0.131 at $23.795 an ounce.

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Global stock markets were mixed overnight. U.S. stock indexes are higher at midday. After selling off Tuesday afternoon following a tweet from President Trump that called for an end to additional Covid stimulus package negotiations with the Democrats, U.S. stock indexes rebounded overnight when Trump in another, later series of tweets walked back his initial tweet by saying he does want certain stimulus measures passed by Congress, including stimulus checks for Americans. The matter remains up in the air, with there still being doubts Congress can soon agree on a stimulus plan for Americans and U.S. businesses.

The U.S. data point at mid-week is the FOMC minutes from the last meeting, to be released Wednesday afternoon. Fed Chairman Jerome Powell in a speech on Tuesday said the U.S. economy is recovering from the Covid-19 lockdowns faster than expected, but added that the pace of the recovery has slowed recently and that it could be a long “slog” before the U.S. economy fully recovers.

The important outside markets early today see the U.S. dollar index slightly lower. Nymex crude oil prices are lower and trading around $39.35 a barrel. The 10-year U.S. Treasury note yield is presently trading around 0.76%.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bulls still have the overall near-term technical advantage. A two-month-old downtrend is in place on the daily bar chart, and trendline resistance turned back this week’s rally. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at this week’s high of $1,927.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at today’s high of $1,902.40 and then at $1,927.00. First support is seen at today’s low of $1,877.10 and then at $1,851.00. Wyckoff’s Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage. However, prices are still in a two-month-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at this week’s high of $24.675 and then at $25.00. Next support is seen at this week’s low of $22.965 and then at $22.50. Wyckoff’s Market Rating: 6.0.

December N.Y. copper closed up 685 points at 303.20 cents today. Prices closed nearer the session high today and hit a two-week high. The copper bulls have the firm overall near-term technical advantage amid choppy and more volatile trading at higher levels, which is not bullish. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the September high of 312.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 279.60 cents. First resistance is seen at today’s high of 305.50 cents and then at 309.00 cents. First support is seen at 300.00 cents and then at 295.00 cents. Wyckoff’s Market Rating: 7.0.

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