Jim Wyckoff Wednesday December 08, 2021 12:39
(Kitco News) – Gold and silver prices are trading not far from unchanged in midday U.S. dealings Wednesday. Buying interest is being limited in safe-haven gold and silver as trader and investor risk appetite has up-ticked markedly the past few trading days. Rising bond yields this week are also a negative for gold and silver markets. However, selling interest in the metals is being squelched by the big rebound in crude oil prices recently, which suggests “black gold” and the leader of the raw commodity sector has put in at least a near-term bottom. February gold was last down $0.50 at $1,784.20 and March Comex silver was last down $0.098 at $22.43 an ounce.
The Omicron fears seen over the past nearly two weeks have quickly faded as trader and investor risk appetite is robust at mid-week. Pfizer has just reported three vaccine doses neutralize the Omicron variant, while two doses likely still prevent serious effects from the variant. As Omicron moves off the front burner of the marketplace, focus is on other matters such as new ideas the Federal Reserve will move even more quickly to end its bond-buying program, so it can start raising U.S. interest rates. The Fed’s FOMC meets next week. The marketplace now expects the Fed to hike rates in May of next year. The Fed recently abandoned its notion that inflation is just “transitory.”
Global stock markets were mostly up in overnight trading. U.S. stock indexes are a bit weaker at midday. China’s stock markets have been pressured this week as property giant Evergrande missed a bond payment deadline Monday.
Traders are also monitoring the Russia-Ukraine border situation, where Russia has amassed troops. U.S. President Biden and Russian President Putin discussed the matter on the telephone Tuesday, but no progress was made on a de-escalation of the apparent Russian intentions of invading Ukraine and even annexing it. It appears this situation will get more tense before it gets better, and that means safe-haven assets are likely to come more into favor in the near term, including gold, silver, the U.S. dollar and U.S. Treasuries.
The key “outside markets” today see Nymex crude oil prices firmer and trading around $72.65 a barrel. This week’s strong gains in crude oil suggest the market last week put in a near-term bottom. The U.S. dollar index is lower. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.523%.
Technically, February gold futures bulls have the slight overall near-term technical advantage but need to show more power soon to keep it. Bulls’ next upside price objective is to produce a close above solid resistance at $1,840.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,761.00. First resistance is seen at today’s high of $1,794.30 and then at $1,800.00. First support is seen at this week’s low of $1,772.40 and then at last week’s low of $1,762.20. Wyckoff’s Market Rating: 5.5
March silver futures bears have the firm overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.46. First resistance is seen at this week’s high of $22.635 and then at $23.00. Next support is seen at last week’s low of $22.035 and then at $22.00. Wyckoff’s Market Rating: 2.5.
March N.Y. copper closed up 450 points at 438.45 cents today. Prices closed near the session high today. The copper bulls and bears are back on a level overall near-term technical playing field. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the November high of 451.15 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 420.00 cents. First resistance is seen at 440.00 cents and then at 445.00 cents. First support is seen at today’s low of 432.05 cents and then at this week’s low of 425.35 cents. Wyckoff’s Market Rating: 5.0.
For Kitco News