old, silver bounce back Tuesday; bulls have more work to do

(Kitco News) - Gold and silver futures prices are posting solid gains at midday Tuesday, but still have a way to go to reclaim Monday’s strong losses that produced some near-term chart damage. The precious metals bulls are now working to stabilize their markets and made some progress today. December gold futures were last up $27.80 at $1,882.30 and December Comex silver was last up $0.839 at $24.54 an ounce.

The gold market Monday saw strong losses that were the worst in seven years and pushed prices to 3.5-month lows. Gold market bulls on Tuesday were possibly focusing more on the economic impact of record-setting monetary stimulus measures that have been enacted by central banks over the past six months, and probably more stimulus in the coming months. This scenario seems to be inviting some serious price inflation down the road—especially as recovering major world economies shift into higher gears in the coming months.

Global stock markets were mostly up overnight, whiled U.S. stock indexes are also mixed to weaker at midday. The marketplace euphoria is not quite as strong Tuesday, following Monday’s news that a successful vaccine has been found for Covid-19. While that news is certainly a bright light in a dark period for the world, the markets on Tuesday are realizing there is still a very rough patch that lies ahead in dealing with the pandemic, both for major economies and human health.

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 is currently fetching 0.94%.

The U.S. dollar index is near steady early today on a corrective bounce after hitting a nine-week low Monday. The other important outside market sees crude oil prices higher and trading around $41.00 a barrel.

Technically, December gold futures bulls were getting back about one-third of Monday’s strong losses that saw prices hit a 3.5-month low. The gold bulls have the overall near-term technical advantage but 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 $1,888.90 and then at $1,900.00. First support is seen at today’s low of $1,858.90 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 beginning 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 $25.00 and then at $25.425. Next support is seen at today’s low of $23.95 and then at this week’s low of $23.60. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed down 50 points at 315.10 cents today. Prices closed nearer the session high 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 321.80 cents and then at 325.00 cents. First support is seen at today’s low of 309.65 cents and then at 306.00 cents. Wyckoff's Market Rating: 8.0.