Gold gains on short covering, bargain hunting

(Kitco News) – Gold prices are moderately higher near midday Monday, on some short covering by the shorter-term futures traders and some perceived bargain hunting after recent selling pressure. Gold and silver prices overnight hit four-week lows. December gold was last up $7.00 at $1,944.70. December silver was last down $0.061 at $22.215.

U.S. stock indexes are slightly lower so far today. Risk appetite has been slowly creeping back into the general marketplace recently, as there has been no major military escalation in the Israel-Hamas war, at least from the markets’ point of view. That’s been a bearish weight on the safe-haven gold and silver markets for the past couple weeks.

It was a quiet economic data day to start the U.S. trading week Monday. However, the pace picks up rapidly Tuesday with the release of the consumer price index report for October, which is forecast at up 3.3%, year-on-year, versus a gain of 3.7% in the September report. The core CPI rate is seen up 4.1% versus 4.1% seen in the September report.

Also on tap this week, U.S. President Biden and Chinese leader Xi Jinping will meet Wednesday during the Asia-Pacific Economic Cooperation summit in San Francisco. The White House cited a resumption of U.S./China military communications as a priority. Iran is also on the agenda, including the question of Iran’s nuclear program.

U.S. lawmakers are once again scrambling to pass a measure to fund the federal government. This time the deadline is midnight Friday.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are higher and trading around $70.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching around 4.64%.

Technically, December gold futures prices hit a four-week low early on today. The bulls and bears are on a level overall near-term technical playing field, but prices are starting to trend down. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,950.00 and then at $1,965.00. First support is seen at today’s low of $1,935.60 and then at $1,925.00. Wyckoff’s Market Rating: 5.0.

December silver futures prices hit a four-week low today. The silver bears have the overall near-term technical advantage. Prices are trending lower on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the October high of $23.88. The next downside price objective for the bears is closing prices below solid support at the October low of $20.85. First resistance is seen at $22.50 and then at $22.80. Next support is seen at today’s low of $21.925 and then at $21.50. Wyckoff’s Market Rating: 3.5.

December N.Y. copper closed up 670 points at 365.40 cents today. Prices closed near the session high today and hit a three-week low early on. Prices also scored a bullish “outside day” up on the daily bar chart today. The copper bears still have the overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 380.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 351.95 cents. First resistance is seen at 370.00 cents and then at the November high of 372.55 cents. First support is seen at 360.00 cents and ten at today’s low of 358.00 cents. Wyckoff’s Market Rating: 3.0.

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