(Kitco News, Tues. Oct. 10th, 2023) – Gold prices are higher and near the daily high in midday U.S. trading Tuesday, on modest safe-haven buying as the Israel-Hamas war continues to unfold with very uncertain consequences. December gold was last up $9.40 at $1,873.70 and December silver was up $0.061 at $21.975.
The marketplace is keenly focused on the Middle East as Israel has declared war on Hamas. Many veteran market watchers, including this one, have been surprised the marketplace has not reacted more strongly to the major geopolitical crisis. The Wall Street Journal reported financial markets reacted more strongly to last Friday’s U.S. jobs report than they did to the weekend violence in the Middle East that for Israel was the worst in 50 years. One respected CNBC commentator summed it up by saying at present the marketplace is not factoring in a further escalation in the Israel-Hamas conflict, meaning no other countries like Iran, Syria or the U.S. will become significantly involved. Many times when unexpected market shocks like this one occur, traders and investors quickly factor into market prices a worst-case outcome, on a knee-jerk reaction. Then, as the worst-case scenario does not play out, market prices begin to retrace their initial big moves. Not the case this time. This veteran market watcher finds it unlikely the Israel-Hamas war will not significantly involve any of the aforementioned countries, which would mean a significant escalation in the conflict. To put in simply: This matter will very likely get worse before it gets better. Beware traders and investors.
Asian and European stocks were mostly higher overnight. U.S. stock indexes are solidly higher near midday.
 |
Gold price ends nine-day losing streak but still negative for the week |
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are weaker and trading around $85.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching around 4.6%. The yield has down-ticked a bit early this week on flight-to-quality buying amid the Middle East turmoil.
Gold Price in US Dollars
Oct 10, 2023 12:30 NY Time
Bid
1,859.90
-1.00 (-0.05%)
Ask
1,860.90
Technically, December gold futures prices Monday gapped higher on the daily bar chart, after posting a bullish “outside day” up last Friday. These are early clues that a market bottom is in place. However, the bears have the firm overall near-term technical advantage. A five-month-old price downtrend is in place 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 $1,879.10 and then at $1,900.00. First support is seen at this week’s low of $1,857.50 and then at $1,849.00.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
December silver futures bears have the firm overall near-term technical advantage. A 2.5-month-old downtrend is still in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the March low of $20.615. First resistance is seen at this week’s high of $22.18 and then at $22.50. Next support is seen at this week’s low of $21.705 and then at $21.50. Wyckoff’s Market Rating: 2.5.
December N.Y. copper closed down 255 points at 362.05 cents today. Prices closed nearer the session low. The copper bears have the solid overall near-term technical advantage. Prices are in a choppy, two-month-old downtrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 378.60 cents. The next downside price objective for the bears is closing prices below solid President technical support at 350.00 cents. First resistance is seen at today’s high of 367.45 cents and then at 370.00 cents. First support is seen at today’s low of 359.10 cents and then at the October low of 354.90 cents.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com