Gold, silver weaker on routine downside corrections amid price uptrends

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(Kitco News) - Gold and silver prices aremodestly lower in midday U.S. trading Thursday, on normal corrective pullbacksafter recent gains. Both metals remain in near-term price uptrends on the dailybar charts. A firmer U.S. dollar index on this day is also a negative outsidemarket element for the metals markets. December gold futures were last down $2.20at $1,782.70. December Comex silver was last down $0.245 at $24.20 an ounce.

Globalstock markets were mostly lower in overnight trading. The U.S. stock indexesare mixed at midday. The U.S. stock market bulls are back in business as theS&P 500 and the Nasdaq indexes are closing on their record highs scored inSeptember. A good corporate earnings season has lifted trader and investor risksentiment as they work through what can be the historically difficult month ofOctober. For the moment it appears the marketplace has pushed to the backburner rising inflation and the prospect of major global economies slowing downin theor post-pandemic recoveries.

Thekey outside markets today see the U.S. dollar index firmer after hittinganother three-week low overnight. Crude oil prices are lower and trading around$83.00 a barrel after hitting a seven-year high overnight. Meantime, the10-year U.S. Treasury note yield is presently fetching 1.66%.

Technically,December gold futures bulls have the overall near-term technical advantage amida three-week-old price uptrend in place on the daily bar chart. Bulls' nextupside price objective is to produce a close above solid resistance at theOctober high of $1,801.90. Bears' next near-term downside price objective ispushing futures prices below solid technical support at the September low of$1,721.10. First resistance is seen at today's high of $1,790.30 and then at$1,800.00. First support is seen at $1,775.00 and then at Wednesday's low of$1,767.10. Wyckoff's Market Rating: 6.0

December silver prices hit a six-week high today.The silver bulls have the overall near-term technical advantage. Prices are ina three-week-old uptrend on the daily chart. Silver bulls' next upside priceobjective is closing prices above solid technical resistance at $25.00 anounce. The next downside price objective for the bears is closing prices belowsolid support at $22.50. First resistance is seen at today's high of $24.55 andthen at the September high of $24.945. Next support is seen at $24.00 and thenat Wednesday's low of $23.615. Wyckoff's Market Rating: 6.0.

DecemberN.Y. copper closed down 1,665 points at 456.80 cents today. Prices closednearer the session high low today on heavy profit taking and weak longliquidation. The copper bulls still have the overall near-term technicaladvantage but faded today. Prices are still in a four-week-old uptrend on thedaily bar chart. Copper bulls' next upside price objective is pushing andclosing prices above solid technical resistance at this week's high of 482.30cents. The next downside price objective for the bears is closing prices belowsolid technical support at 435.00 cents. First resistance is seen at 460.00cents and then at 465.00 cents. First support is seen at today's low of 455.20cents and then at 450.00 cents. Wyckoff's Market Rating: 6.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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