Gold and silver pull back on normal profit taking

New York (Nov 18)  Gold and silver prices are moderately lower in midday U.S. trading Thursday, on routine downside corrections and light profit taking from the shorter-term futures traders. December gold was last down $7.70 at $1,862.50 and December Comex silver was last down $0.212 at $24.955 an ounce.

Global stock markets were mostly down in overnight trading. The U.S. stock indexes are mixed at midday. The stock market bulls are keeping the major indexes buoyant amid upbeat corporate earnings reports. However, inflation worries continue on the rise. Rallies in many raw commodity futures markets on Wednesday underscored notions that commercial end-users are already “stocking up” ahead of time, in order to beat perceived likely future price increases. That only makes supplies shorter and more inclined to price increases.

The key outside markets today see the U.S. dollar index lower on a downside correction after hitting a 15-month high on Wednesday. Nymex crude oil prices are firmer and trading around $78.75 a barrel. Oil prices overnight hit a six-week low as it appears the crude market has put in a near-term top. There is talk the U.S. and China may tap their strategic oil reserves to help ease higher gasoline prices. The 10-year U.S. Treasury note yield is presently fetching around 1.55%. 

Technically, December gold futures bulls have the firm overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,873.30 and then at this week’s high of $1,879.50. First support is seen at this week’s low of $1,851.00 and then at $1,839.00. Wyckoff's Market Rating: 7.0.

December silver futures bulls have the overall near-term technical advantage\e amid a six-week-old uptrend in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.13 an ounce. The next downside price objective for the bears is closing prices below solid support at the November low of $23.045. First resistance is seen at this week’s high of $25.49 and then at $25.75. Next support is seen at today’s low of $24.73 and then at $24.50. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 430 points at 430.85 cents today. Prices closed nearer the session high 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 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 415.00 cents. First resistance is seen at Wednesday’s high of 436.05 cents and then at 440.00 cents. First support is seen at 425.00 cents and then at this week’s low of 419.15 cents.

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