Gold sees solid gains on short covering, bargain hunting
Gold sees solid gains on short covering, bargain hunting
Date: 12/08/2021
Jim Wyckoff Wednesday August 11, 2021 12:59
(Kitco News) – Gold prices are sharply higher in midday U.S. trading Wednesday, supported by some bargain buying in the cash market and short covering in the futures market. Silver prices are just slightly up. The precious metals bulls have stabilized their markets at mid-week, following recent selling pressure. October gold futures were last up $19.80 at $1,749.50 and September Comex silver was last up $0.068 at $23.46 an ounce.
Today’s U.S. consumer price index (CPI) report for July came in at up 0.5%. That was right in line with the consensus forecast and compares to a rise of 0.9% in June. Year-on-year, the CPI was up 5.4%, also right in line with market expectations. The markets showed little reaction to the reports.
Global stock markets were mixed overnight, with European indexes at or near record highs and Asian shares a bit weaker. The U.S. stock indexes are again mixed at midday but are still near their recent record highs. The U.S. Congress is showing some bipartisanship and is set to pass major budget and infrastructure spending bills from the Biden Administration, and that is keeping the marketplace generally upbeat at mid-week.
For the moment, traders and investors are looking past the worrisome rise of the new Covid variant, which is threatening to slow the global economic recovery, especially in China.
The key outside markets today see the U.S. dollar index weaker after hitting a 4.5-month high overnight. Nymex crude oil futures prices are a bit up and trading around $68.40 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.35%.
Technically, Gold bulls are stabilizing the market after prices hit a more-then-four-month low on Monday. The gold bears still have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,676.40. First resistance is seen at this week’s high of $1,763.00 and then at $1,775.00. First support is seen at today’s low of $1,724.30 and then at Tuesday’s low of $1,716.50. Wyckoff’s Market Rating: 4.0
The silver bears have the firm overall near-term technical advantage. 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 this week’s low of $22.295. First resistance is seen at Tuesday’s high of $23.675 and then at $24.00. Next support is seen at $23.00 and then at $22.50. Wyckoff’s Market Rating: 3.0.
September N.Y. copper closed up 135 points at 436.85 cents today. Prices closed near the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the July high of 462.75 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 409.40 cents. First resistance is seen at 440.00 cents and then at 442.50 cents. First support is seen at Tuesday’s low of 428.40 cents and then at this week’s low of 424.35 cents. Wyckoff’s Market Rating: 6.0.
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