(Kitco News) – Gold and silver prices are significantly lower and have six-week lows at noon in the US on Monday. Metals today came under strong selling pressure amid a bearish “outside market” environment that included strong gains in the US dollar index and big losses in crude oil futures prices. As seen on several occasions in recent months, safe-haven metals failed to seize an offer despite a global market sell-off to start the trading week, including big losses on US stock indices. October gold futures last fell from $ 53.00 to $ 1,900.20 and December ExCom silver last fell from $ 2.484 to $ 24.64 the ounce.
Much of the commodities sector was hammered on Monday. The long-term weak-hand liquidation was marked by many commodity futures markets, including gold and silver. For many traders and investors, this was a case of the old market saying, “if you can’t sell what you want, you sell what you can,” probably related in part to the pressure to sell calls. margin in many markets.
Importantly, bulls in the gold market must now firmly defend the latest weak reaction to the short-term uptrend in prices, which is the August low of $ 1865, based on contracts at. October term, to keep the bullish trend alive and to avoid serious short-term technical damage inflicted. Bulls in the silver market saw their bullish trend stagnate as prices fell just below the August low of $ 23.80, based on December futures, to at least temporarily reverse the short-term upward price trend in this market.
Risk aversion is indeed back in the market to kick off the trading week, for several reasons. The death of U.S. Supreme Court Justice Ruth Bader Ginsburg has shocked the U.S. Congress as to when a new justice will be passed. The intense debate and focus on it has apparently pushed a new US economic stimulus package to the background. A significant increase in Covid-19 cases in Europe, and particularly in the UK, suggests that the eurozone could see many businesses shutting down again amid a ‘second wave’ of infections. And add in the rising trade and political tensions between the United States and China to make traders and investors even more anxious. Remember, this is the time of year when the stock and financial markets can become more volatile. US stock indices are experiencing their worst month since March.
As noted above, major foreign markets today see the US dollar index significantly higher and now hitting a six week high. Nymex crude oil prices are trading solidly around $ 39.00. Meanwhile, the yield on the 10-year US Treasury note is currently trading around 0.66%.
US economic data released on Monday was light and included the Chicago Fed’s national activity index.
Technically, October gold futures bulls still have the overall short-term technical advantage, but they have faded badly today and now need to step up and show new power very soon to avoid technical damage and maintain a lively five month uptrend on the daily bar. graphic. The next bull price target is to produce an October futures close above strong resistance at today’s high of $ 1,954.10. Bears’ next short-term price drop target is to push futures prices under strong technical support to the August low of $ 1,865.00. The first resistance is seen at $ 1,920.50 and then at $ 1,930.00. First support is seen at today’s low of $ 1,878.50 and then $ 1,865.00. Wyckoff Market Rating: 6.5
The December silver futures bulls have the overall short-term technical advantage, but they have faded badly today and need to show new power very soon to reignite a five-month uptrend in price that was in effect. place on the daily bar graph. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at today’s high of $ 27.13 an ounce. The next lower price target for the bears is to close the price below strong support at $ 22.50. The first resistance is seen at $ 25.00, then at $ 26.00. Next support is seen at today’s low of $ 23.78 and then at $ 23.50. Wyckoff Market Rating: 6.5.
December NY copper closed 855 points lower at 303.10 cents today. Prices closed near the session low today after hitting a 26-month high early today. Prices also marked a bearish “outside day” on the daily bar chart today. Copper bulls still have the overall short-term technical advantage with prices in a six month uptrend on the daily bar chart. The next bullish price target for copper bulls is to push and close price above strong technical resistance at today’s high of 312.10 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 305.00 cents, then 307.50 cents. First support is seen at today’s low of 303.25 cents and then 300.00 cents. Wyckoff Market Rating: 7.5.
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