Gold holds Tuesday’s strong gains as crypto market still shaky

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(Kitco News) – Gold and silver prices are holding close to steady price levels in midday U.S. trading Wednesday. The bulls still have technical momentum to suggest more price upside in the near term. Some safe-haven demand has been featured in the precious metals markets the past day or so, as the crypto currency markets have become very wobbly. Gains in the metals today were limited by a higher U.S. dollar index and lower crude oil prices. December gold was last up $1.00 at $1,717.00 and December silver was down $0.102 at $21.39.

The marketplace is still buzzing about the turmoil in the crypto currency markets on Tuesday that spilled over into safe-haven buying in gold and silver. The crypto exchange FTX suffered a major liquidity crisis and had to be absorbed by its bigger rival Binance. The cryptos are still shaky Wednesday, in the aftermath of Tuesday’s jolt. The cryptos are just like other markets. When a crisis of confidence occurs, traders and investors all running for the exit door at the same time creates a severe liquidity crunch.

Global stock markets were mostly lower overnight. U.S. stock indexes are lower at midday. The U.S. mid-term elections proved pollsters wrong as there was no “Republican wave” of victories. It appears the Republicans will have a slight majority in the House of Representatives, but the Democrats appear to be keeping control of the Senate. However, several key races in both the House and Senate have not been decided, and which could still tip the scales. Still, if history proves correct, a divided Congress that cannot pass new legislation does favor the stock market bulls.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are lower and trading around $87.00 a barrel. Oil prices have slipped this week on worries of slowing demand from China, due to rising Covid cases there. The 10-year U.S. Treasury note is yielding 4.107%.

Traders are anxiously awaiting the next U.S. report inflation Thursday morning, with the release of the consumer price index report for October, which is expected to come in up 7.9%, year-on-year, compared to the 8.2% rise seen in the September report.

Technically, December gold futures prices hit a four-week high today. The gold futures bears have the slight overall near-term technical advantage. However, bulls have momentum as a price downtrend on the daily bar chart has been negated. Prices this week have also seen a bullish upside breakout from a trading range, to suggest still more upside in the near term. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,618.30. First resistance is seen at today’s high of $1,725.80 and then at the October high of $1,738.70. First support is seen at $1,700.00 and then at $1,675.00. Wyckoff’s Market Rating: 4.5.

December silver futures prices hit a more-than-three-month high Tuesday. The silver bulls have the overall near-term technical advantage. Prices are in a choppy two-month-old uptrend 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 $20.00. First resistance is seen at this week’s high of $21.72 and then at $22.00. Next support is seen at $21.00 and then at this week’s low of $20.435. Wyckoff’s Market Rating: 6.5.

December N.Y. copper closed up 190 points at 370.10 cents today. Prices closed nearer the session high and hit a nine-week high today. The copper bears and bears are back on a level overall near-term technical playing field. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 330.30 cents. First resistance is seen at today’s high of 374.80 cents and then at the August high of 378.35 cents. First support is seen at this week’s low of 356.25 cents and then 350.00 cents. Wyckoff’s Market Rating: 5.0.