Corrective Price Pullbacks for Gold, Silver After Recent Gains

Live Spot Gold

SPOT MARKET IS OPEN
closes in 6 hrs. 31 mins.Dec 09, 2020 10:29 NY Time

Silver Price & PGMs

Dec 09, 2020 10:29 NY TimeKitco 10AM Silver Fix

Kitco News, (Wed. Dec. 9th, 2020) –  Gold and  silver futures prices are lower in early U.S. trading Wednesday, on normal corrective pullbacks from recent good gains. Also, there is less risk aversion in the marketplace at mid-week than what was apparent earlier this week, which is bearish for the safe-haven metals. Still, recent upside price action suggests near-term market bottoms are in place for gold and silver. February gold futures were last down $12.40 at $1,862.40 and March Comex silver was last down $0.366 at $24.37 an ounce. 

Global stock markets were mixed but mostly up overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. indexes have this week set more record highs. The marketplace continues to generally look over the horizon into 2021, when most believe the Covid-19 pandemic will be tamped down by successful vaccines taken by hundreds of million people and major global economies will be well on the road to full recoveries. However, the World Health Organization has just said, “The epidemic in the U.S. is punishing. It’s widespread. It’s quite frankly shocking to see one to two persons a minute die in the U.S.” The virus is blamed for more than 286,000 deaths and over 15 million confirmed infections in the U.S. New records on daily deaths, infections and hospitalizations continue to be set in the U.S.

Traders and investors are also more upbeat on the increasing likelihood the U.S. Congress will soon pass a financial aid package for Americans that totals just under $1 trillion.

The  U.S. dollar index is weaker early today and not far above last week’s 2.5-year low. The other important outside market sees January Nymex crude oil futures prices a bit higher and trading around $45.70 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.91%. 

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.

Technically, the February gold futures bulls and bears are on a level overall near-term technical playing field. A four-week-old downtrend line on the daily bar chart has been negated this week. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,767.20. First resistance is seen at this week’s high of $1,879.80 and then at $1,885.00. First support is seen at the overnight low of $1,855.10 and then at $1,850.00.

March silver futures bulls have the slight overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the November high of $26.27 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at the overnight high of $24.755 and then at this week’s high of $25.015. Next support is seen at the overnight low of $24.09 and then at $24.00.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com