Gold, silver up, following solid price gains in crude oil

(Kitco News, Tues.  Dec. 7th, 2021) – Gold and silver prices are modestly higher in early U.S. trading Tuesday. A strong rally in raw commodity sector leader crude oil early this week is supporting upside price action in the metals markets. However, gains are being limited in the safe-haven metals as trader/investor risk appetite has improved markedly so far this week. February gold was last up $4.30 at $1,783.80 and March Comex silver was last up $0.197 at $22.46 an ounce.

Global stock markets were higher in overnight trading. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The worst fears of the Omicron variant are not materializing, so far, and risk appetite is back on the table for the marketplace, for now. Oil prices are also rallying and U.S. Treasury bond yields are rising on ideas U.S. and global economic growth will not be seriously impacted by Omicron.

Traders and investors are keeping an eye on a phone call today between U.S. President Biden and Russian President Putin. The West thinks the Russians might be poised to invade Ukraine, as Russian troops are gathered near the Ukraine-Russia border.

Bitcoin, ethereum prices stabilize after $480 billion crypto weekend wipeout

In overnight news, the Euro zone’s third-quarter gross domestic product came in at up 2.2% from the second quarter and up 3.9%, year-on-year. Those numbers were in line with market expectations.

In other news, China’s November exports were up 22%, year-on-year, while its imports were up 31.7% in the month. Both numbers handily beat market expectations.

The key “outside markets” today see Nymex crude oil prices solidly higher again and trading around $71.50 a barrel. This week’s strong gains in crude oil suggest the market last week put in a near-term bottom. The U.S. dollar index is slightly higher. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.441%.

U.S. economic data due for release Tuesday includes the weekly chain store index and Johnson Redbook retail reports, the international trade report, revised productivity and costs, the IBD/TIPP economic optimism index and consumer credit.

page

Technically, February gold futures bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Bulls’ next upside price objective is to produce a close above solid resistance at $1,840.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,761.00. First resistance is seen at this week’s high of $1,789.00 and then at $1,800.00. First support is seen at $1,775.00 and then at last week’s low of $1,762.20. Wyckoff’s Market Rating: 5.5

The March silver bears have the firm overall near-term technical advantage. Prices have been trending down for nearly three weeks. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.46. First resistance is seen at this week’s high of $22.635 and then at $23.00. Next support is seen at last week’s low of $22.035 and then at $22.00.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com