(Kitco News) – Gold and silver prices are significantly lower Tuesday at noon in the United States. Gold fell back below $ 2,000. Traders and investors put the risk back on the table on Tuesday, in part due to the overnight announcement that Russia has approved a Covid-19 vaccine. Russian President Vladimir Putin told reporters the vaccine was given to his daughter. However, global health experts are very skeptical and warn that the Russian vaccine is premature because it has not gone through the full trials that the United States and other countries need for approval. October gold futures were last down $ 85.20 an ounce to $ 1,945.10. Comex silver prices in September were last down $ 2.571 to $ 26.685 an ounce.
As I said in my Kitco Special Report I published earlier today which included longer term weekly charts on gold and silver: a day when gold prices were down about $ 85 an ounce on the day and silver over $ 2, many precious metals market bulls can be disgusting, wondering, “Are the best markets up?” Of course, no one knows the answer to this question and there are all kinds of opinions and speculations on this topic – especially today.
The cautious trader and investor should take a look at some price outlook from stocks observed over the past few months, to get an overview of the price situation and how it is moving. On the weekly continuation charts of the nearby Comex gold and silver futures markets, prices remain in a strong long-term uptrend and from a weekly chart perspective the current losses do not appear extremes. Indeed, gold and silver prices have seen a major appreciation in recent months and, from a longer-term technical perspective, today’s declines are not a slowdown. minor.
Nonetheless, trading for the remainder of this week will be extremely critical for the gold and silver markets. The closing of markets on Friday will be very revealing. If gold and silver futures prices close at or near their weekly lows on Friday, then this would be a significant early hint that these markets have set at least short term highs. If markets can rally over the next few days and end the week well away from their weekly lows, the bulls may soon resume trading.
Global stock markets rebounded on Tuesday and US stock indices are higher at noon. Along with news about the Russian Covid vaccine, there are reports that the US Congress and President Trump may be moving one step closer to agreeing on a new government stimulus package for Americans, which is also positive for market sentiment. Additionally, new cases of Covid-19 in the United States are starting to decline a bit.
Important foreign markets today are seeing Nymex crude oil prices slightly firmer and trading around $ 42.00 per barrel. The US dollar index is down slightly. The yield on the benchmark 10-year US Treasury bill is currently around 0.6%.Technically, October gold futures are seeing the first big downward correction gold has seen during this big bull run. No major damage has been done to the charts so far, but stronger selling pressure this week would likely damage the charts. Last Friday, prices hit a record high of $ 2,078.00. The bulls still have the strong overall technical advantage in the short term. Prices are still in a two month uptrend on the daily bar chart. The next bullish target for gold bulls’ near-term price is to produce a close above technical resistance at the all-time high of $ 2,078.00. Bears’ next short-term price drop target is to push prices under strong technical support at $ 1,900.00. The first resistance is seen at $ 1,986.00 and then at $ 2,000.00. First support is seen at today’s low of $ 1,939.30 and then at $ 1,912.00. Wyckoff Market Rating: 8.0
Silver futures prices in September were close to their midday low. Last Friday, prices hit an over seven-year high at $ 29,915. So today’s price action is just a big downward correction in an uptrend. No major damage has been done to the chart yet, but stronger selling pressure this week would likely damage the charts. The bulls still have the strong overall technical advantage in the short term. Prices are still in an uptrend for almost five months on the daily bar chart. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at $ 30.00 an ounce. The next lower price target for the bears is to close the price below strong support at $ 25.00. The first resistance is seen at $ 27.50 and then at $ 28.00. The next support is seen at $ 26.50 and then $ 26.00. Wyckoff Market Rating: 8.0.
September copper in New York City closed 135 points higher at 287.50 cents today. Prices closed closer to the peak of the session today. Copper bulls have the overall technical advantage in the short term. However, a 4.5 month uptrend on the daily bar chart has been reversed. The next bullish price bull target for copper is to push and close the price above the strong technical resistance at 300.00 cents. The next lower price target for the bears is to close the price below strong technical support at 270.00 cents. First resistance is seen at Monday’s high of 288.50 cents, followed by last week’s high of 293.95 cents. First support is seen at today’s low of 283.90 cents and then 280.00 cents. Wyckoff Market Rating: 7.0.
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