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Gold, silver bulls step in to “buy the dip”

Date: 26/11/2019

Jim Wyckoff Tuesday November 26, 2019 13:25
Kitco News

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(Kitco News) – Gold and silver prices are modestly higher and near their daily highs in midday U.S. trading Tuesday. Following recent selling pressure the bullish traders decided to do some bargain hunting today and buy the dip in prices. Still, the safe-haven metals are facing stiff headwinds amid scant risk aversion in the global marketplace at present. December gold futures were last up $2.30 an ounce at 1,459.20. December Comex silver prices were last up $0.144 at $17.035 an ounce.

Global trader/investor risk appetite remained upbeat Tuesday, following reports that the top trade negotiators from the U.S. and China held a telephone conversation Monday, with the Chinese press reporting the two sides had “reached a consensus on properly resolving latest issues.” President Trump also said Tuesday China is in the “final throes” of a phase one trade deal with the U.S. U.S. stock indexes pushed to more new record highs Tuesday, which did limit the upside for the safe-haven gold and silver markets.

A report Tuesday said consumer demand for gold from its two largest consuming nations—China and India—is declining. The report said weaker local currencies have made gold more expensive for consumers to purchase, including increased duties from India’s government.

The key “outside markets” today see the U.S. dollar index slightly lower. Nymex crude oil prices are firmer and trading around $58.25 a barrel.

Technically, December gold futures closed up $3.00 at $1,460.00 today. Prices closed nearer the session high and scored a mildly bullish “outside day” up today. The bears still have the slight overall near-term technical advantage as prices have been trending lower for 11 weeks. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,425.00. First resistance is seen at $1,465.00 and then at $1,475.00. First support is seen at today’s low of $1,449.60 and then at the November low of $1,446.20. Wyckoff’s Market Rating: 4.5.

December silver futures closed up $0.154 at $17.04 today. Prices closed near the session high and scored a mildly bullish “outside day” up today. The silver bears still have the slight overall near-term technical advantage. Prices have been trending lower for 11 weeks. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at last week’s high of $17.21 and then at $17.50. Next support is seen at today’s low of $16.78 and then at last week’s low of $16.705. Wyckoff’s Market Rating: 4.5.

December N.Y. copper closed up 290 points at 267.65 cents today. Prices closed nearer the session high today and scored a bullish “outside day” up on the daily bar chart. The copper bulls today gained the slight overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the November high of 273.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 255.00 cents. First resistance is seen at today’s high of 267.90 cents and then at 270.00 cents. First support is seen at 265.00 cents and then at today’s low of 263.55. Wyckoff’s Market Rating: 5.5.

By Jim Wyckoff