Gold, silver slide as U.S. dollar, stock markets rally

(Wallace Refiners) – Gold and silver futures prices are lower in midday U.S. trading Wednesday. The metals are seeing selling pressure from upbeat trader/investor risk appetite at mid-week, evidenced by the rallies in global stock indexes. A higher U.S. dollar index on this day is also a negative for the metals. December gold futures were last down $15.00 at $1,861.40 and December Comex silver was last down $0.182 at $24.30 an ounce.

Global stock markets were mixed but mostly up overnight, while U.S. stock indexes are higher at midday. Monday’s news that Pfizer has produced a successful vaccine for Covid-19 has been followed by other firms saying they are also close to doing so. Russia has now also come out and claimed it has a vaccine that is 92% effective. The marketplace at mid-week is dealing with notions that as soon as the latter half of 2021, economies and humans’ way of life could be almost back to normal. But in the meantime, the coronavirus is rampant in the U.S., Europe and elsewhere. Many states in the U.S. are reporting hospitals are full—and it’s not even winter yet, when conditions are expected to be worse. The spike highs in the U.S. stock indexes Monday, on the initial euphoria surrounding a successful vaccine, could well be market tops that won’t get taken out any time soon.

U.S. Treasury bond and note yields have risen to eight-month highs this week, on the prospects for a solid U.S. economic recovery in 2021. The yield on the benchmark 10-year U.S. Treasury note futures is currently fetching 0.96%. The U.S. government and U.S. Treasury market are closed Wednesday for the Veterans Day holiday.

The U.S. dollar index is higher today on a corrective bounce after hitting a nine-week low Monday. The other important outside market sees crude oil prices higher, hitting a nine-week high, and trading around $42.00 a barrel.

Technically, December gold futures bulls have the overall near-term technical advantage but are fading and need to continue to work this week to stabilize the market and at least establish a new trading range. Prices Monday did drop below what was strong support at the September low of $1,851.00. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,848.00. First resistance is seen at today’s high of $1,882.50 and then at Tuesday’s high of $1,888.90. First support is seen at today’s low of $1,853.90 and then at $1,848.00. Wyckoff’s Market Rating: 6.0

December silver futures bulls still have the overall near-term technical advantage and are working to stabilize the market after Monday’s strong losses. Silver bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $26.135 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at Tuesday’s high of $24.58 and then at $25.00. Next support is seen at today’s low of $23.81 and then at this week’s low of $23.60. Wyckoff’s Market Rating: 6.0.

December N.Y. copper closed down 220 points at 313.35 cents today. Prices closed near mid-range today. The copper bulls have the solid overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the October high of 321.80 cents. The next downside price objective for the bears is closing prices below solid technical support at 290.00 cents. First resistance is seen at today’s high of 317.55 cents and then at 321.80 cents. First support is seen at this week’s low of 309.65 cents and then at 306.00 cents. Wyckoff’s Market Rating: 7