Gold sees slight gains, silver solidly up and hits 5-wk high

Gold and silver prices are higher in midday U.S. trading Tuesday, with silver sharply up and notching a five-week high. Gold prices have backed well down from the session high on profit taking by the shorter-term futures traders. A drop in the U.S. dollar index to a three-week low today and more bullish near-term chart postures for both metals invited buyers to step up. December gold futures were last up $3.00 at $1,768.70. December Comex silver was last up $0.601 at $23.865 an ounce.

Global stock markets were mostly higher in overnight trading. The U.S. stock indexes are higher at midday. The U.S. stock indexes have made solid rebounds from their recent lows and are now not far below their record highs. Yet, gold and silver markets were able to rally today, which is a good sign for the metals market bulls.

Still near the front burner of the marketplace is the global supplies shortage and transportation bottlenecks that have many of those supplies' prices rising, including energy. Many industrial metals prices are soaring, including copper, aluminum and magnesium. Nymex crude oil prices are higher and hit a seven-year high of $83.58 a barrel overnight. Natural gas prices are also at very elevated levels. As winter approaches in the Northern Hemisphere, amid the rising energy costs and worries in some countries about securing winter heating needs, it seems "Murphy's law" will almost certainly come into play: a much harsher-than-normal winter for many countries in the Northern Hemisphere.

The 10-year U.S. Treasury note yield is presently fetching 1.597%. For perspective, the U.K. 10-year gilt yield is presently 1.135% and the German 10-year bund yield is at -0.144%.

Technically, December gold futures bulls have the slight overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Bulls need to show more power soon to keep it alive. Bulls' next upside price objective is to produce a close above solid resistance at the October high of $1,801.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,721.10. First resistance is seen at today's high of $1,786.00 and then at $1,800.00. First support is seen at this week's low of $1,760.30 and then at $1,750.00. Wyckoff's Market Rating: 5.5

December silver futures prices hit a five-week high today. The silver bulls have gained the slight overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at today's high of $24.18 and then at $24.50. Next support is seen at $23.50 and then at today's low of $23.22. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed down 140 points at 471.15 cents today. Prices closed nearer the session low today on profit taking after hitting a five-month high on Monday. The copper bulls have the solid overall near-term technical advantage. Prices are in a steep four-week-old uptrend on the

daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the May high of 487.05 cents. The next downside price objective for the bears is closing prices below solid technical support at 440.00 cents. First resistance is seen at this week's high of 482.30 cents and then at 487.05 cents. First support is seen at today's low of 466.85 cents and then at 460.00 cents. Wyckoff's Market Rating: 8.0.
 

By Jim Wyckoff

For Kitco News

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