Gold, silver see solid gains as USDX suffers sharp losses

(Kitco News) - Gold and silver prices are solidly higher at midday Monday, supported by a strong daily pullback in the U.S. dollar index and by U.S. Treasury yields falling a bit. The main focus on gold and silver traders remains on the daily price direction of the U.S. dollar index. December gold was last up $19.60 at $1,668.50 and December silver was up $0.614 at $18.685.

Markets are somewhat calmer to start the trading week as the new U.K. Treasury chief, Chancellor of the Exchequer Jeremy Hunt, affirmed Britain will roll back nearly all of its previously announced tax-cut plans that had been roiling financial markets for three weeks and said some spending will have to be cut.

Global stock markets were mostly firmer overnight. U.S. stock indexes are higher at midday. Stock traders continue to focus on corporate earnings reports.

China’s five-year communist party plenum is under way, with Chinese President Xi Jinping saying his zero-Covid policy will continue and so will a tough line on Taiwan. Xi said his policies of a firm-handed rule at home and a more powerful China abroad will continue.

Meantime, a Wall Street Journal survey of economists finds the group expecting a better than 50-50 chance for a U.S. economic recession in the next year. The survey said odds of a recession in that timeframe are now 63% versus a 49% chance the group saw in a July survey.

The key outside markets today see the U.S. dollar index sharply lower. Nymex crude oil prices are modestly up and trading around $86.00 a barrel. The U.S. Treasury 10-year note yield is presently fetching 3.963%.  

Technically, the gold futures bears still have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $1,738.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at $1,688.90 and then at $1,700.00. First support is seen at last week’s low of $1,645.60 and then at $1,622.20. Wyckoff's Market Rating: 2.5

The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at $19.00 and then at $19.29. Next support is seen at today’s low of $18.155 and then at $18.00. Wyckoff's Market Rating: 2.5.

December N.Y. copper closed up 15 points at 342.50 cents today. Prices closed near mid-range today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 369.25 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at last week’s high of 350.10 cents and then at 355.00 cents. First support is seen at last week’s low of 335.40 cents and then at 330.00 cents. Wyckoff's Market Rating: 3.0.