Gold steady as bearish outside markets offset safe-haven buying

(Kitco News) - Gold prices are near unchanged in midday U.S. trading Thursday. Some safe-haven demand is featured amid keener risk aversion in the marketplace this week. However, a surging U.S. dollar index and slumping crude oil prices are keeping price gains squelched. October gold futures were last down $1.00 at $1,781.30 and September Comex silver was last down $0.172 at $23.25 an ounce.

Global stock markets were mostly lower overnight. The U.S. stock indexes are mixed at midday and well up from their daily lows. The U.S. stock index bulls are fading this week and needed to stop the bleeding to avoid near-term technical damage. Risk-off attitudes are in play this week. It appears the summertime doldrums have come to an abrupt and early end this year. The surging coronavirus delta strain is keeping traders and investors tentative, especially heading into what history shows can be the rough months of September and October for the stock markets. The chaos in Afghanistan and the botched U.S. pullout are also causing market jitters. And Wednesday afternoon’s FOMC minutes showed a still wary Fed that remains concerned about the effects of the pandemic on economies and financial markets. The Fed also continues to lean toward tightening its monetary policy as early as this fall. Traders and investors are looking ahead to the annual Federal Reserve symposium in Jackson Hole, Wyoming, next week. More clarity on U.S. monetary policy and the timing of any policy moves are likely to be revealed at that meeting.

The key outside markets today see the U.S. dollar index solidly higher and hitting a 10.5-month high today. Nymex crude oil futures prices are sharply lower, hit a 2.5-month low overnight and  are trading around $63.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.243%.

Technically, Gold bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week’s high of $1,795.00 and then at $1,800.00. First support is seen at this week’s low of $1,769.80 and then at $1,760.00. Wyckoff's Market Rating: 5.5

The silver bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $22.295. First resistance is seen at today’s high of $23.515 and then at $24.00. Next support is seen at today’s low of $23.08 and then at $23.00. Wyckoff's Market Rating: 2.5.

September N.Y. copper closed down 860 points at 403.40 cents today. Prices closed nearer the session low and hit a 4.5-month low today. The copper bears have the overall near-term technical advantage and have momentum. Prices are in an accelerating three-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 430.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 385.45 cents. First resistance is seen at 410.00 cents and then at today’s high of 413.35 cents. First support is seen at today’s low of 396.15 cents and then at 390.00 cents. Wyckoff's Market Rating: 3.5.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com

www.kitco.com