Gold and silver gain as early losses seen as buying opportunity

New York (Sept 9)  Gold and silver prices are higher in midday U.S. trading Wednesday. Gains in the metals are seen despite a solid rebound in the U.S. stock market. A weaker U.S. dollar index at midday is also working in favor of the precious metals bulls. Still, the gold and silver bulls need a positive fundamental spark to break prices out of the recent sideways trading ranges. October gold futures were last up $12.30 at $1,947.40 and December Comex silver was last up $0.114 at $27.105 an ounce.

Global stock markets were mixed overnight. European shares were mostly up and Asian shares mostly down. The marketplace is presently shrugging off news that AstraZeneca has halted its Covid-19 vaccine trials because one person in the trial contracted an unexplained illness. Temporarily halting such trials is not uncommon, experts said.

The other important outside market today sees Nymex crude oil prices solidly higher and trading around $38.25, on a corrective bounce following sharp losses recently. The yield on the U.S. Treasury 10-year note is trading around 0.68% today.

Technically, October gold futures bulls have the firm overall near-term technical advantage amid recent choppy trading. Prices are still in a five-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,950.00 and then at $1,972.40. First support is seen at today’s low of $1,918.80 and then at this week’s low of $1,904.60. Wyckoff's Market Rating: 7.0

December silver futures bulls have the firm overall near-term technical advantage amid a five-month-old price uptrend still in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the September high of $29.235 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $27.385 and then at $27.89. Next support is seen at today’s low of $26.565 and then at this week’s low of $25.985.

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