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Gold prices are slightly up and near the daily high, while silver is modestly down in midday U.S. trading Thursday. The markets are seeing some price consolidation following recent solid gains. Mild profit-taking from the shorter-term futures traders was featured in earlier trading. Still-keener risk aversion in the general marketplace as the Middle East crisis continues to play out will very likely keep a floor under the two safe-haven metals for at least the near term. December gold was last up $2.20 at $1,970.60 and December silver was down $0.079 at $23.01.
The U.S. marketplace highlight of the day Thursday is the midday speech by Federal Reserve Chairman Jerome Powell to the Economic Club of New York. Powell’s remarks will be closely scrutinized by the marketplace, to see if he wavers from his heretofore hawkish tone on U.S. monetary policy.
Rising bond yields and high tensions in the Middle East are squelching the equities market bulls late this week. Reports said Hamas is firing more missiles into Israel. This comes after an explosion at a Gaza hospital killed over 500 people earlier this week. U.S. and Israeli intelligence say the explosion was caused by Palestinian militants.
Asian and European stocks were mostly lower overnight. U.S. stock indexes are slightly down at midday. Downbeat quarterly earnings from EV maker Tesla has dampened Wall Street spirits Thursday.
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Time to increase allocation to gold - JPMorgan's Kolanovic
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are slightly up and trading around $88.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is closing in on 5.0% and is presently fetching around 4.9%.
Technically, December gold futures prices hit a six-week high Wednesday. Recent price action suggests that a market bottom is in place. The bulls have the slight overall near-term technical advantage. A five-month-old price downtrend on the daily bar chart has been negated and prices are now trending higher. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,875.00. First resistance is seen at this week’s high of $1,975.80 and then at the August high of $1,980.20. First support is seen at today’s low of $1,957.00 and then at $1,950.00. Wyckoff's Market Rating: 5.5.
December silver futures bulls have the slight overall near-term technical advantage. A three-month-old downtrend on the daily bar chart has been negated and prices are now trending up. Recent price action suggests a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.60. First resistance is seen at today’s high of $23.185 and then at this week’s high of $23.49. Next support is seen at today’s low of $22.785 and then at this week’s low of $22.535. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed up 45 points at 359.15 cents today. Prices closed near mid-range today. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, 2.5-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 378.60 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at this week’s high of 363.05 cents and then at 367.45 cents. First support is seen at this week’s low of 353.15 cents and then at 350.00 cents. Wyckoff's Market Rating: 1.5.
By
Jim Wyckoff
For Kitco News
