Gold and silver prices fell solidly again in mid-day US trading on Tuesday. Senior analyst Jim Wyckoff states that after the strong losses on Monday, the sales continued. According to the analyst, the bulls are weakening rapidly and they need to step up and show fresh strength very soon to avoid serious short-term technical damage and to revive price uptrends on daily bar charts. cryptocoin.com We have compiled the latest developments in the markets together with Jim Wyckoff’s evaluations and analyzes for our readers.
“If US stocks start to erode, it gives rise for gold and silver”
Gold for December delivery was last traded at $1,792.50, and Comex silver for December delivery was last traded at $23,635. Against the precious metals market bulls, there is an overall strong US dollar index (DXY) earlier this week, recently falling crude oil prices and rising US Treasury bond yields, according to the analyst. The analyst notes that all of this is in the midst of major geopolitical flare-ups that could support safe-haven metals.
Global stock markets fell mostly in overnight trading. US stock indices also fell at midday. The S&P 500 and Nasdaq stock indices hit new record highs on Monday, then retreated to close lower closer to their daily lows. The analyst states that indices are recording “key returns” to the downside on daily bar charts. Continued selling pressure and lower closes on Tuesday could better confirm bearish reversals, a technical clue that market tops are present for these indices. Jim Wyckoff comments:
If US stock indices start to erode, that will likely be bullish for the safe-haven gold and silver markets.
Analyst: Traders watch Turkish currency Lira transactions falling to record lows
Meanwhile, there are growing ideas that the Fed will raise interest rates sooner than anticipated just a few weeks ago. Jerome Powell said the Fed will focus on tackling inflation in his speech on Monday, following his re-nomination for Fed chair by Chairman Joe Biden. Many market watchers believed that the Fed and Jerome Powell were falling behind the curve on the inflation front. The analyst thinks the Fed Chair may need to close this now. U.S. Treasury rates rose this week, in part because of Jerome Powell’s re-nomination and his and Joe Biden’s statements about inflation. The two-year US bond yield rose to 0.638%, the highest level since March 2020.
The analyst also states that traders are watching Turkish lira transactions, which this week fell to record lows against the US dollar. Despite rising inflation concerns, Turkey has recently reduced its policy interest rate. The analyst says the strong US dollar is hurting many secondary currencies. According to the analyst, the risk of “contamination” in the foreign exchange market could offer a bullish opportunity for the gold and silver markets.
Gold and silver technical analysis
Technically speaking, December gold futures prices hit a three-week low today and the bulls still have a slight overall short-term technical advantage, but are down badly this week, senior analyst Jim Wyckoff says. According to the analyst, a seven-week uptrend on the daily bar chart is currently in serious jeopardy. The analyst draws attention to the following technical levels:
The bulls’ next upside price target is to produce a close above solid resistance at this week’s high at $1,850.40. The bears’ next short-term bearish price target is pushing futures prices below solid technical support at the November low of $1,758.50. Initial resistance is seen at $1,800 followed by today’s high at $1,812.50. Initial support is seen at today’s low at $1,781.70, followed by $1,775.
The analyst states that December silver futures generally gain short-term technical advantage and the seven-week uptrend on the daily bar chart quickly stalls. According to the analyst, the next upside price target for silver bulls is to close prices above solid technical resistance at November’s high of $25.49, while the next downside price target for bears is to close prices below solid support at November’s low of $23,045. Jim Wyckoff goes on to point out the following technical levels in his analysis:
Initial resistance is seen at $24.00 followed by today’s high at $24.34. The next support is seen at $23.28, today’s low, followed by $23,045.
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