Gold And Silver Prices Punished By Strong Dollar, US Stock Market Rebound
New York (Oct 31) Gold and silver prices are lower and have hit three-week and four-week lows, respectively, in early-afternoon U.S. trading Wednesday. Improving trader and investor risk appetite in the marketplace at mid-week is bearish for the safe-haven metals. Also, a stronger U.S. dollar index that scored a new for-the-move high today is pressuring the precious metals markets this week. December gold futures were last down $9.00 an ounce at $1,216.30. December Comex silver was last down $0.177 at $14.28 an ounce.
Global stock markets were mixed to mostly higher today. U.S. stock indexes are solidly higher in afternoon dealings. There is still near-term technical evidence the U.S. stock indexes have put in market tops. Volatility in the U.S. stock market could still appear at any time, as seen with Monday afternoon’s price swoon.
Today is the last trading day of the month, which makes it a more important trading day, from a technical chart perspective.
Today’s U.S. ADP national employment report for October came in at up 227,000 jobs. That much better than the reading of up 180,000 that was expected. The key U.S. economic data point of the week, if not the month, will be Friday’s November employment report from the Labor Department.
Turkey's central bank on Wednesday raised its inflation forecasts for this year and next--predicting a 23.5% rate by the end of 2018. The central bank said the negative impact on the Turkish economy from the Turkish lira depreciation on the foreign exchange market is the main reason for the dire inflation forecast. The Chinese yuan has dropped to a 10-year low against the U.S. dollar this week. There is a debate on whether the Chinese government wants the yuan to depreciate to gain world trade advantages. Or, the government may want to stem the yuan’s slide due to fears of capital flight out of China. These matters warrant close attention in the coming weeks, as it could prompt financial and currency markets turmoil.
The other key outside markets today finds November Nymex crude oil prices weaker and trading around $66.00 a barrel after hitting a nine-week low on Tuesday.
Technically, the bulls have lost their slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the October high of $1,246.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at $1,220.00 and then at today’s high of $1,225.00. First support is seen at today’s low of $1,213.40 and then at $1,210.00. Wyckoff's Market Rating: 5.0
The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at today’s high of $14.49 and then at this week’s high of $14.78. Next support is seen at today’s low of $14.245 and then at $14.00. Wyckoff's Market Rating: 2.0.
December N.Y. copper closed down 70 points at 265.70 cents today. Prices closed near mid-range and hit a six-week low today. The copper bears have the firm overall near-term technical advantage. Prices are in a choppy, six-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 287.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents.
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