Gold and silver bulls now working to stabilize prices
New York (Sept 24) Gold prices are slightly higher and silver slightly lower in midday U.S. trading Thursday. Both metals hit two-month lows overnight, but prices are trading near their session highs at midday, suggesting the bulls are working hard to stop the bleeding and stabilize their markets. A rallying U.S. dollar index recently that hit a two-month high overnight and eroding near-term technical postures have the gold and silver bulls in near-term trouble. December gold futures were last up $4.60 at $1,872.80 and December Comex silver was last down $0.125 at $22.98 an ounce.
Not quite half-way through the “rough waters” period (September and October) for the stock market, it seems odds do not favor a strong recovery to new record highs in the U.S. stock indexes. It’s also a period when North Americans and Europeans will be staying inside more as colder weather approaches, with the potential for new Covid restrictions on businesses crimping their revenues. And there is no new financial stimulus package for Americans in sight. Throw in the element of the high potential for a disputed and even protracted U.S. presidential election result (President Trump said Wednesday the presidential election in November will likely be decided by the Supreme Court), and all of the above should favor trader/investor demand safe-haven assets like gold, silver, the U.S. dollar and U.S. Treasuries. Yet, many longtime market watchers are presently scratching their heads that only the greenback is benefiting at present, while gold and silver are taking a beating and U.S. Treasuries languish.
Global stock markets were mostly weaker overnight. U.S. stock indexes are firmer at midday.
The important outside markets today see the U.S. dollar index slightly down at midday after hitting another two-month high overnight. Nymex crude oil prices are slightly down and trading around $39.80. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.67% today.
Technically, December gold futures bulls have the slight overall near-term technical advantage but a six-week-old downtrend is now in place on the daily bar chart and bears have momentum. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,820.00. First resistance is seen at $1,885.00 and then at $1,900.00. First support is seen at today’s low of $1,851.00 and then at $1,835.00.
KitcoNews
