Gold, Silver Up As Greenback, Stocks Sell Off
(Kitco News) – Gold and silver prices ended the U.S. day session higher Thursday, on a corrective bounce from selling pressure seen earlier this week. A weaker U.S. dollar index and a downturn in world stock markets were supportive daily elements for the metals markets. December Comex gold was last up $6.60 an ounce at $1,289.60. December Comex silver was last up $0.268 at $17.26 an ounce.
The world’s bourses saw some profit taking Thursday after recently hitting record or multi-year highs. Today is the 30th anniversary of the “Black Monday” record-setting crash of the U.S. stock market.
The rift between Spain and its Catalonia region deepened Thursday when the Catalan leader did not respond to a government order to stop his secessionist plans. Spanish government officials are holding an emergency meeting on the matter. This was another mildly supportive element for the gold and silver markets today.
The key “outside markets” Thursday saw the U.S. dollar index slightly lower. Trading in the index has turned choppy. Meantime, Nymex crude oil futures prices were lower and trading above $51.00 a barrel.
China on Wednesday started its twice-a-decade Party Congress meetings, in which major economic and cultural planning initiatives are laid out for the next five years. Traders and investors will keep a close watch for any pronouncements coming out of those meetings. Overnight, markets were somewhat rattled when a Chinese monetary official warned of a “Minsky moment.” That is a theory by Hyman Minsky that says long periods of market stability leads to instability in markets. The China monetary official was referring to China’s asset bubble.
Live 24 hours gold chart [Kitco Inc.]
Technically, December gold futures prices closed nearer the session high and scored a bullish “outside day” up on the daily bar chart today. Bulls have the slight overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80. First resistance is seen at today’s high of $1,292.00 and then at $1,300.00. First support is seen at today’s low of $1,277.60 and then at $1,270.00. Wyckoff’s Market Rating: 5.5
Live 24 hours silver chart [ Kitco Inc. ]
December silver futures prices closed nearer the session high today. The silver bulls still have the slight overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.345. First resistance is seen at today’s high of $17.295 and then at $17.50. Next support is seen at $17.00 and then at this week’s low of $16.92. Wyckoff’s Market Rating: 5.5.
December N.Y. copper closed down 105 points at 316.80 cents today. Prices closed near mid-range and saw more profit taking after hitting a 3.5-year high on Monday. The copper bulls still have the firm overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the September high of 330.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 310.00 cents. First resistance is seen at 320.00 cents and then at this week’s high of 325.95 cents. First support is seen at today’s low of 313.80 cents and then at this week’s low of 311.20 cents. Wyckoff’s Market Rating: 7.5.