(Kitco News) – Gold and silver prices are moderately down in the US at noon on Wednesday, under pressure from a rebound in the US dollar index at the weekend after hitting a low two-year low earlier in the week. Additionally, the decline in crude oil prices which fell to a four week low today is a bearish force in the foreign market that is working against the bulls in precious metals. Safe-haven bulls are a little puzzled by the inability of their metals to rally today in the face of a big sell-off in the US stock market. However, the metals came out of their daily lows as US stocks fell. October gold futures were down $ 6.80 to $ 1,930.10. The Comex silver price in December was down $ 0.395 to $ 27.00 an ounce.
This morning’s weekly jobless claims report showed new claims of 881,000, which was below expectations of a 950,000 hike. Gold and silver prices fell after the reading of jobless claims better than expected. Traders are now awaiting Friday’s August employment report from the US Department of Labor, which is expected to post non-farm payroll gains of around 1.3 million.
Global stock markets were mixed overnight. The Nasdaq and S&P 500 hit record highs on Wednesday and were due to normal corrective pullbacks in their existing uptrends. There could also be a bit more risk aversion in the market on Thursday, according to reports that the United States will impose restrictions on its Chinese diplomats, in retaliation for China to do the same on its American diplomats.
On the bright side, the London Financial Times reported that the Covid-19 herd immunity may be closer than previously thought. According to scientists, antibody tests could significantly underestimate the proportion of people infected with the virus. Other reports also state that U.S. health officials say a vaccine could be ready for distribution by November 1.
Important foreign markets are now seeing Nymex crude oil prices lower and hitting a four-week low – trading around $ 41.25 per barrel. The US dollar index is higher again today on a corrective rebound after hitting a two-year low on Tuesday. The yield on the 10-year US Treasury note is currently trading around 0.62%.Technically, October gold futures bulls still have the overall firm short-term technical advantage amid recent choppy trading. Prices are still in a five month uptrend on the daily bar chart. The next bull price target is to produce an October futures close above strong resistance at this week’s high of $ 1,992.50. The next short-term bearish price drop target for the Bears is to push futures prices under strong technical support at $ 1,900.00. First resistance is seen at today’s high of $ 1,948.40 followed by Wednesday’s high of $ 1,972.40. First support is seen at today’s low of $ 1,919.70 and then at $ 1,915.00. Wyckoff Market Rating: 7.0
The December silver futures bulls have the overall firm short-term technical advantage amid a five-month-old price uptrend still in place on the daily bar chart. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at this week’s high of $ 29.235 an ounce. The next lower price target for the bears is to close the price below strong support at $ 25.00. First resistance is seen at $ 27.50, then at today’s high of $ 27.89. Next support is seen at today’s low of $ 27.01 and then at $ 26.50. Wyckoff Market Rating: 7.0.
December NY copper closed 445 points lower at 297.60 cents today. Prices closed closer to the session low today and saw more profit taking after hitting a 28-month high on Tuesday. Today’s prices also marked a bearish “outside day” on the daily bar chart. Copper bulls still have the overall technical advantage in the short term with prices still in an uptrend on the daily bar chart. The next bullish price target for copper bulls is to push and close prices above strong technical resistance at this week’s high of 309.45 cents. The next lower price target for the bears is to close prices under strong technical support at the August low of 279.60 cents. First resistance is seen at 300.00 cents, then at today’s high of 304.20 cents. First support is seen at today’s low of 295.35 cents and then at 292.50 cents. Wyckoff Market Rating: 7.0.
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