Gold, silver weaker; bulls need new fundamental boost

Gold, silver weaker; bulls need new fundamental boost

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 Gold and silver futures prices are modestly lower in midday U.S. trading Thursday. Gold prices were near their daily lows. The metals are languishing as the bulls need a shot of fresh, positive fundamental news to break prices out to the upside. December gold futures were last down $3.80 at $1,886.80 and December Comex silver was last down $0.051 at $24.27 an ounce.

Traders and investors are still monitoring U.S. congressional discussions on a stimulus package for American citizens and businesses, although a breakthrough deal does not appear to be close at hand. Still, the U.S. stock indexes rallied Wednesday and overnight on notions that some kind of a deal will be reached soon. However, more downbeat comments from the U.S. House Speaker Pelosi Thursday threw cold water on ideas a deal could come soon. That deflated the U.S. stock indexes from their daily highs, and gold and silver prices were pressured today. Once again, the gold and silver markets are behaving like raw commodity markets instead of safe-haven assets.

The important outside markets early today see the U.S. dollar index near steady. Nymex crude oil prices are higher and trading around $41.25 a barrel. The 10-year U.S. Treasury note yield is presently trading around 0.77%.

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 December 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 $1,905.30 and then at $1,927.00. First support is seen at this week’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 100 points at 304.30 cents today. Prices closed nearer the session high today. 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 this week’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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