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(Kitco . News) – He went And the silver prices A strong rally and close to daily highs at midday on Wednesday in the United States, amid a demand for safe haven amid a nervous market as the calendar is set to turn into a turbulent October for stocks and financial markets. The US dollar index is trading at midday strongly lower, bond yields are also lower during today’s session, and crude oil prices are strongly higher – all of which are daily bullish elements outside of the metals markets. Gold prices fell to a 2.5-year low overnight. December gold last gained $30.00 at $1666.00, and December silver rose $0.468 at $18.805.
Today’s Barron’s headline reads, “The Dollar Is Ballistic.” The generally strong US dollar is putting serious pressure on the currencies of many smaller countries, which is very worrying for those who have experienced currency crises in the past decades. The main concern is the spread of general market contagion if secondary currency turmoil and illiquidity extend to severe anxiety and mistrust in the global financial transaction system. The Chinese yuan hit a record low against the US dollar today. Major economies have taken steps over the years to prevent another crisis in global financial markets, but when everyone rushes to the exit doors simultaneously, even powerful systems can be bypassed. Any large investment bank or hedge fund that appears to be in trouble may provide the first clue that a much larger problem is developing. Such a scenario is likely to prompt a larger move in fixed assets, safe haven gold and silver.
Most global stock markets fell overnight. US stock indices are higher at midday when covering short positions. The market was fairly quiet overnight when the Bank of England made a surprise announcement that it would start buying UK government bonds in order to stabilize the troubled UK bond market. The International Monetary Fund said the UK government should re-examine its announced plan to stimulate its economy through massive borrowing and bond sales.
Technically, December gold prices hit a 2.5-year low earlier today. Prices also recorded an “outside of the day” bullish trend today. Gold futures bears still have a strong technical advantage overall in the near term. Prices have been in a downtrend for six weeks on the daily bar chart. The next bullish price target for the bulls is to produce a close above the solid resistance at $1700.00. The bears’ next bearish price target in the near term is pushing futures prices below the strong technical support level at $1,600.00. We notice first resistance at the day’s high at $1,669.40 and then at $1,680.00. First support is seen at $1,650.00 and then at $1,635.00. Wyckoff Market Rating: 1.5.
December silver futures prices posted an “outside day” higher today after hitting a three-week low early on. Silver bears still have a strong overall technical advantage in the near term. The next bullish price target for the silver bulls is to close prices above the strong technical resistance at $20.00. The next target for the bears downtrend price is a price close below the strong support level at $17.40 in September. We notice the first resistance at this week’s high at $19.045 and then at $19.40. Next support is seen at the Tuesday low at $18.295 then $18.00. Wyckoff Market Rating: 2.5.
Copper in New York in December closed 735 points higher at 335.70 cents today. Prices closed near the session high today and posted a bullish “off-day” rally after hitting a nine-week low early on. Copper bears have a strong overall technical advantage in the short term. Prices have been in a downtrend for four weeks now on the daily bar chart. The next bullish price target for the copper bulls is to propel and close prices above strong technical resistance at the September high of 369.25 cents. The bears’ downtrend price next target is a price close below strong technical support at the July low of 315.55 cents. First resistance was seen at 340.00 cents, then 348.00 cents. The first support appears at 330.00 cents, then the daily low at 324.30 cents. Wyckoff Market Rating: 2.5.
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