The bulls of gold and silver stabilize the mkts; bears may already be exhausted


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(Kitco News) – Gold and silver futures prices are higher Wednesday at noon in the United States. Bulls in precious metals stabilized prices today after Tuesday’s huge declines. In fact, today’s high-end daily closings in the midst of large daily trading ranges have produced the selling of “exhaustion tails” on the daily bar charts for both gold and silver, for suggest that today’s lows are short-term market funds. October gold futures were last up $ 7.70 an ounce to $ 1,946.00. Comex silver prices in September were last up $ 0.031 to $ 26.08 an ounce.
Now the gold and silver markets have an important short-term “line in the sand” – today’s lows. (See technical analysis paragraphs below.)
Global stock markets were mostly higher overnight and US stock indices are also higher at noon. As of mid-week, risk appetite remains high and there are signs that market psychology is shifting a bit when it comes to the Covid-19 pandemic. Even though most believe the Russian vaccine approval announced on Tuesday is premature and a blow to Russian President Putin, there appears to be growing notions that the worst of the coronavirus could be behind – both on the economic and human plan. Nations are feverishly working on a legitimate vaccine that could be available in the fourth quarter of this year, and if not, it will likely arrive early next year. Some health experts are now claiming that humans’ own self-defense systems might fight Covid better than most medical professionals initially anticipated. Major global economies are rebounding, albeit some in spurts, and business closures like the ones that happened in the spring are less and less likely, even if the pandemic remains unchecked. In the United States, Covid infection rates fell this week, and the United States Congress could move closer to a new stimulus package for Americans.
All of the above items are bullish for stocks and some commodities, and bearish for US Treasuries, gold, and silver. This is all the more impressive for the gold and silver market action on Wednesday, where prices stabilized. Yields on the benchmark 10-year US Treasury bill have climbed rapidly this week and are currently hitting around 0.66% after hovering around 0.5% and near a record low last week.
Important foreign markets are now seeing Nymex crude oil prices firming up and trading around $ 42.35 per barrel. The US dollar index is weaker.Technically, gold prices in October were near the session high after hitting a three-week low at $ 1,865.00 overnight. Gold bulls have the overall firm technical advantage in the short term, but must now defend what is now the latest ‘reaction low’ in the still existing uptrend on the daily chart – the current low of 1 $ 865.00. A drop below this level would reverse the uptrend in short-term prices to suggest that a short-term market high is in place. The next bull price target is to produce an October futures close above the strong resistance at $ 2,000.00. The next short-term bearish price drop target for the Bears is to push futures prices under strong technical support at $ 1,865.00. The first resistance is seen at $ 1,975.00 and then $ 2,000.00. The first support is seen at $ 1,925.00 and then $ 1,900.00. Wyckoff Market Rating: 7.0

Silver futures prices in September were near the session high. September silver futures bulls have the overall firm technical advantage in the short term, but must now defend what is the latest ‘reaction low’ in the still-existing uptrend on the daily chart – the most. current low of $ 23.58. A drop below this level would reverse the uptrend in prices to suggest that a short-term market top is in place. The next bullish price target for Silver Bulls is to close the price above strong technical resistance at $ 28.00 an ounce. The next lower price target for the bears is to close the price below strong support at $ 23.58. The first resistance is seen at $ 26.50 and then at $ 27.00. The next support is seen at $ 25.50 and then $ 25.00. Wyckoff Market Rating: 7.0.
September copper in New York City closed 160 points higher at 289.20 cents today. Prices closed closer to today’s session high and marked a bullish “outside day” on the daily bar chart. Copper bulls have the overall technical advantage in the short term. 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 today’s high of 290.25 cents, followed by last week’s high of 293.95 cents. First support is seen at today’s low of 280.75 cents, followed by the August low of 278.20 cents. Wyckoff Market Rating: 7.0.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has done everything possible to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.


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