AM-PM Roundup

Gold, silver firmer amid weaker greenback

Gold and silver prices are modestly up in midday U.S. trading Thursday, supported in part by a weaker U.S. dollar index on this day and by the overall bullish chart postures for both metals. Prices are well their daily highs, however. October gold futures were last up $8.50 at $1,955.30 and December Comex silver was last up $0.157 at $27.245 an ounce.

Global stock markets were mostly weaker overnight. U.S. stock indexes are weaker at midday. Traders and investors are wondering if the rebound in the U.S. stock market will continue, following solid gains posted in the stock indexes Wednesday. The months of September and October can produce serious turbulence in the stock and financial markets. New turmoil in the stock markets should benefit the safe-haven gold and silver markets.

The regular monetary policy meeting of the European Central Bank was Thursday. The ECB did not make any significant changes in policy, as expected, and said rates will remain low until inflation hits its target rate of around 2% annually.

The important outside markets today see the U.S. dollar index slightly weaker but well up from its daily low, following decent gains posted earlier this week. Nymex crude oil prices lower and trading around $37.75. The yield on the U.S. Treasury 10-year note is trading around 0.7% today.

Technically, October gold futures bulls have the firm overall near-term technical advantage amid recent choppy trading. Prices are still in a five-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today’s high of $1,966.60 and then at $1,972.40. First support is seen at today’s low of $1,942.80 and then at $1,925.00. Wyckoff's Market Rating: 7.0

December silver futures bulls have the firm overall near-term technical advantage amid a five-month-old price uptrend still in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the September high of $29.235 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at today’s high of $27.755 and then at $28.00. Next support is seen at Wednesday’s low of $26.565 and then at this week’s low of $25.985. Wyckoff's Market Rating: 7.0.

December N.Y. copper closed down 535 points at 299.80 cents today. Prices closed nearer the session low today. The copper bulls have the solid overall near-term technical advantage as prices are in a 5.5-month-old uptrend on the daily bar chart. However, the recent higher volatility at higher price levels is a warning signal that a topping process could be occurring. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 309.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 279.60 cents. First resistance is seen at today’s high of 305.90 cents and then at 309.45 cents. First support is seen at today’s low of 298.15 cents and then at last week’s low of 295.35 cents. Wyckoff's Market Rating: 7.5.

By Jim Wyckoff

For Kitco News