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(Kitco News) – Gold and silver futures prices rose slightly on Tuesday at noon in the United States. Short coverage is presented in the futures markets after a bearish US economic report this morning. December gold was last up $6.70 at $1,660.90 and December silver was up $0.126 at $19.325.
Gold and silver markets were boosted following a weaker than expected U.S. Consumer Confidence Index report for October, which contributed to the fall in the U.S. Dollar Index to significantly lower levels and also pushed US Treasury yields lower. The pessimistic report of the consumer confidence index could encourage the Federal Reserve to abandon its aggressive monetary tightening in the United States sooner.
Global stock markets were mixed overnight, but Asian stocks were mostly down. US stock indices are heading for lower openings when the day’s session in New York begins. There are a few early technical clues that US equity indices have put into market lows, including short-term price declines on the daily charts for canceled indices.
Veteran market watchers took note of Chinese President Xi Jinping’s consolidation of power at the recently concluded communist party meeting, including shoving a former party leader out of the confab meeting who was sitting just outside side of Xi. Asian stock markets have strengthened significantly following Xi’s takeover. Asian investors believe Xi will push his world’s second-largest economy away from the West and, in the meantime, continue strict Covid lockdowns that will further dampen China’s economy.
The Chinese yuan fell 0.6% against the US dollar to CNY 7.3084. The currency has now fallen 13% this year and the recent selloff followed a 7% decline in the Hang Seng index. “Traders are losing faith in China following Xi’s sweeping upheaval in the National Congress. The leader used the meeting to fill the Politburo with hardliners loyal to zero Covid and hostile market policies,” brokerage SP Angel said. China’s central bank reacted to the weak yuan by moving the upper limit on cross-border financing, in a bid to boost foreign capital inflows.
Major overseas markets are seeing the US Dollar Index rise slightly today. Nymex crude oil prices are lower and trading around $83.50 per barrel. The 10-year US Treasury note is currently yielding 4.175%.
Technically, bearish gold futures have the strong overall short-term technical advantage. The Bulls’ next upside price objective is to produce a close above the strong resistance at $1,700.00. Bears next short-term downside price objective is to push futures prices below strong technical support at $1,600.00. First resistance is seen at this week’s high at $1,675.50 and then at $1,685.00. First support is seen at today’s low of $1,641.20 and then at $1,630.00. Wyckoff Market Score: 1.5.
The silver bears have the firm overall short-term technical advantage. However, recent price action suggests that a market bottom is in place. The next upside price objective for silver bulls is to close prices above strong technical resistance at the October high of $21.31. The next downside price objective for the bears is to close prices below the strong support at $17.40. First resistance is seen at this week’s high at $19.675 and then at $20.00. The next support is seen at $19.00 and then at $18.60. Wyckoff Market Rating: 3.0.
December New York Copper closed 230 points at 340.75 cents today. Prices closed closer to the session high today. Copper bears have the overall short-term technical advantage. The next upside price objective for the copper bulls is to push and close prices above strong technical resistance at the September high of 369.25 cents. The next downside price target for the bears is for prices to close below strong technical support at the July low of 315.55 cents. First resistance is seen at this week’s high at 350.45, then October’s high at 359.30 cents. First support is seen at last week’s low at 330.30 cents, then October’s low at 324.30 cents. Wyckoff Market Rating: 3.0.
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