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Business News of Sunday, 18 October 2020

Source: Laud Business

Gold, silver see good price rebounds at mid-week

Gold and silver futures prices are solidly higher in early U.S. trading Wednesday, as bullish traders stepped in to buy Tuesday’s sharp dip in prices.

A lower U.S. dollar index at mid-week is also aiding the precious metals market bulls. December gold futures were last up $18.00 at $1,913.00 and December Comex silver was last up $0.446 at $24.58 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session near steady levels. Featured in the stock markets this week is third-quarter earnings reports from major companies.

The worrisome spreading of the Covid-19 virus in major industrialized countries and elsewhere has traders and investors tentative at mid-week. Microsoft founder Bill Gates, who has been studying pandemics for many years, said in a CNBC interview today that the U.S. should expect a “rough” next several months regarding the COVID-19 virus.

The approaching U.S. presidential election and doubts of any new U.S. stimulus package for Americans before the end of the year are also unknowns that have paused the stock indexes at mid-week.

From a charts perspective, the U.S. stock indexes have had a good run just recently and are due for normal, corrective pullbacks.

In overnight news, the Euro zone August industrial output came in at up 0.7% from July but down 7.4%, year-on-year. Those numbers were in line with market expectations.

The important outside markets early today see the U.S. dollar index slightly firmer. Nymex crude oil prices are weaker and trading around $40.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.71%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the producer price index.

Technically, the December gold futures bulls have the overall near-term technical advantage amid recent choppy and sideways trading. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,950.00.

Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at $1,920.00 and then at Tuesday’s high of $1,930.60. First support is seen at the overnight low of $1,885.00 and then at $1,877.10.

December silver futures bulls have the overall near-term technical advantage and are still working on a price uptrend on the daily chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $26.00 an ounce.

The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $25.00 and then at Tuesday’s high of $25.31. Next support is seen at the overnight low of $23.93 and then at $23.50.

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