(Kitco News), Thurs. Nov. 16th, 2023) – Gold and silver prices are solidly higher in midday U.S. trading Thursday, with gold hitting a two-week high and silver a six-week high. The precious metals bulls are getting fuel from this week’s tamer U.S. inflation data that sunk the U.S. dollar index and also has the marketplace thinking about a Federal Reserve interest rate cut in the spring. The near-term technical postures for gold and silver have also improved this week. That’s prompting chart-based buying interest from the shorter-term futures market speculators. December gold was last up $21.20 at $1,985.70. December silver was last up $0.392 at $23.935.

U.S. stock indexes are weaker at midday, on corrective pullbacks from recent strong gains that pushed the indexes to multi-week highs on Wednesday. Risk appetite in the marketplace has up-ticked this week after the tamer U.S. inflation reports that suggest the Federal Reserve is done with its interest-rate-increase cycle and the next monetary policy move may be a rate cut this spring. Also, several weeks into the Israel-Hamas war, there has so far been no major involvement from other countries, including the U.S. and Iran. However, that situation remains very uneasy.

The metals bulls are looking at the easier Fed policy continuing to depreciate the U.S. dollar, continuing to push Treasury yields down and making for better global demand for metals now that interest rates may have peaked.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil prices are sharply lower, hit a four-month low and are trading around $73.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.469%.

Technically, December gold futures bulls have gained the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today’s high of $1,991.10 and then at $2,000.00. First support is seen at $1,975.00 and then at today’s low of $1,959.00. Wyckoff’s Market Rating: 5.5.

December silver futures prices hit a six-week high today. The silver bulls have gained the overall near-term technical advantage and have momentum. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at this week’s low of $21.925. First resistance is seen at today’s high of $24.165 and then at $24.50. Next support is seen at today’s low of $23.35 and then at $23.00.

December N.Y. copper closed down 230 points at 369.55 cents today. Prices closed nearer the session low today and hit a 2.5-month high early on. The copper bears have the slight overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 351.95 cents. First resistance is seen at today’s high of 374.25 cents and then at 378.60 cents. First support is seen at Wednesday’s low of 366.80 cents and then at 365.00 cents.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com