(Kitco News) – Gold futures prices are trading modestly lower at midday Thursday, and have given up moderate gains seen earlier. The safe haven metals are now languishing and need a new fundamental spark to reinvigorate the bulls. The precious metals are being squelched this week amid less risk aversion in the marketplace. February gold futures were last down $4.40 at $1,834.10 and March Comex silver was last up $0.04 at $24.02 an ounce.
Gold and silver saw a moderate pop higher today on a downbeat U.S. weekly jobless claims report but the gains could not be held and quickly eroded.
The European Central Bank Thursday expanded its bond-buying program by 500 million Euros. The new quantitative easing measures were expected by the marketplace and little reaction from markets was seen.
The World Bank reported that gold exchange traded fund (ETF) outflows in November hit a record, due to and improving economic backdrop. Gold ETF’s are the main investment vehicle for those investors wanting to own gold.
Global stock markets were flat to weaker overnight. U.S. stock indexes are narrowly mixed at midday. The U.S. indexes have this week set more record highs. As the marketplace remains overall upbeat and continues to generally look over the horizon into 2021, when most believe the Covid-19 pandemic will be tamped down, veteran traders wonder if the stock markets will experience a “sell the fact” scenario, whereby all the good news will have been baked into the cake by the time the pandemic actually does fade away—and then the stock markets will have already put in major tops and will be declining.
Traders and investors are now wondering if the U.S. Congress will soon pass a financial aid package for Americans that totals just under $1 trillion. Earlier this week attitudes on the matter were more positive, but have faded late this week as there is still no agreement between Democrats and Republicans.
Negotiations between the U.K. and European Union regarding a smooth Brexit are ongoing but no agreement has been reached. This continues to create uncertainty and anxiety among European market participants. Reports said a Sunday deadline is in place for reaching an agreement.
The U.S. dollar index is lower at midday and not far above the recent 2.5-year low. The other important outside market sees January Nymex crude oil futures prices solidly higher, hitting an eight-month high and trading around $47.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.9%.
Technically, February gold futures bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at this week’s high of $1,879.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,854.20 and then at $1,865.00. First support is seen at this week’s low of $1,824.80 and then at $1,810.00. Wyckoff’s Market Rating: 5.0
March silver futures bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the November high of $26.27 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at $24.50 and then at Wednesday’s high of $24.755. Next support is seen at this week’s low of $23.63 and then at $23.00. Wyckoff’s Market Rating: 5.0.
March N.Y. copper closed up 645 points at 357.80 cents today. Prices closed near the session high and hit a 7.5-year high. Prices also scored a big and bullish “outside day” up on the daily bar chart today. The copper bulls have the strong overall near-term technical advantage and gained even more power today. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at today’s high of 359.35 cents and then at 365.00 cents. First support is seen at 350.00 cents and then at today’s low of 345.00 cents. Wyckoff’s Market Rating: 9.0.
