Gold, silver see some price weakness as USDX firmer

Gold, silver see some price weakness as USDX firmer

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 Gold and silver futures prices are modestly down in early U.S. trading Tuesday, and seeing some pressure in part on a firmer U.S. dollar index on this day. U.S. stock indexes that are approaching their record highs is also a bearish underlying factor for the safe-haven metals. December gold futures were last down $4.90 at $1,924.10 and December Comex silver was last down $0.216 at $25.055 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session mixed. Featured in the stock markets this week will be third-quarter earnings reports from major companies.

Many major industrialized countries, including the U.S., just can’t tamp down the Covid-19 infection spread. Johnson and Johnson has now paused its Covid vaccine trials, in what was hoped to be a promising vaccine.

In overnight news, China’s imports in September were up 13.2% after falling 2.1% in August. Exports were up 9.9% in September. Both imports and exports beat market expectations and underscore how China’s forced and nearly complete lockdowns for its Covid-19 hotspots have put that country’s economy back on track much sooner than most of the free world’s economies.

Following the U.S. government holiday on Monday, the marketplace gets its first data point of the week Tuesday, with the consumer price index in focus. CPI for September is seen at up 0.2% from August, versus up 0.4% the month prior. The U.S. CPI is seen up 1.4%, year-on-year versus up 1.3% in August. These numbers are certainly not problematic on the inflation front.

The important outside markets early today see the U.S. dollar index firmer. Nymex crude oil prices are higher and trading around $40.25 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.75% today.

Other U.S. economic data due for release Tuesday includes the NFIB small business index, the IMF world economic outlook, real earnings, and the monthly Treasury budget statement.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bulls have the overall near-term technical advantage as recent price action has negated a downtrend line on the daily bar chart. Bulls are now working on a price uptrend on the daily chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,950.00. 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 Monday’s high of $1,939.40 and then at $1,950.00. First support is seen at the overnight low of $1,915.20 and then at $1,900.00. Wyckoff’s Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage and are working on a price uptrend on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at this week’s high of $25.71 and then at $26.00. Next support is seen at the overnight low of $24.72 and then at $24.50. Wyckoff’s Market Rating: 7.0.

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