Gold bulls can't escape grip of rallying USDX

New York (Oct 29)  Gold futures prices are lower in midday U.S. trading Thursday. The precious metals have been hit by a stronger U.S. dollar index this week, and now the slumping crude oil market is also working against the metals market bulls, as well as most of the raw commodity sector. December gold futures were last down $9.00 at $1,870.20 and December Comex silver was last up $0.126 at $23.49 an ounce.

There was important U.S. economic data due for release Thursday morning, including the weekly jobless claims report that was a big more upbeat as expected, and the advance third-quarter GDP estimate that was up a record 33.1% from the second quarter.

Global stock markets were mixed overnight. U.S. stock indexes are firmer at midday on a corrective bounce from Wednesday’s sharp losses. More and more, traders and investors are taking a very dim view of the Covid-19 prospects over the coming winter. Europe is on a worse trajectory than the U.S., but health experts say the U.S. is about four weeks behind Europe. France is on complete lockdown for the second time this year, while other European countries are in varying degrees of increasing business shutdowns. Concerns about the approaching U.S. presidential election and the transfer of power if Joe Biden wins are also in the marketplace.

It’s a very busy day for U.S. corporate earnings, including heavyweights Apple, Alphabet, Facebook, Amazon and Twitter.

The important outside markets today see the U.S. dollar index solidly up and hitting a four-week high. Greenback bulls are having a very good week. Nymex crude oil prices are solidly lower and hit a 4.5-month low, trading around $35.85 a barrel. The breakdown in crude oil prices this week, which produced serious technical damage on the charts, is a significantly bearish omen for the entire raw commodity sector, given that crude oil is arguably the sector leader. The yield on the benchmark U.S. 10-year Treasury note is 0.78% today.

Technically, December gold futures bulls still have the slight overall near-term technical advantage but are fading and need to show fresh power soon to avoid more serious chart damage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,939.40. 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 $1,885.10 and then at $1,900.00. First support is seen at today’s low of $1,859.20 and then at $1,851.00. Wyckoff's Market Rating: 5.5

December silver futures bulls have the slight overall near-term technical advantage but a price uptrend on the daily chart has been negated and the bulls have faded. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $25.71 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 $24.00 and then at Wednesday’s high of $24.675. Next support is seen at today’s low of $22.625 and then at $22.00. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed down 20 points at 306.20 cents today. Prices closed nearer the session low today. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 330.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at Wednesday’s high of 310.65 cents and then at this week’s high of 314.30 cents. First support is seen at this week’s low of 304.20 cents and then at 302.00 cents.

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