(Kitco News) – Gold and silver prices are moderately higher in early U.S. trading Wednesday. There are lingering geopolitical matters that have many traders and investors looking to the safe-haven metals as an investment. December gold futures were last up $8.20 an ounce at 1,512.20. December Comex silver prices were last up $0.19 at $17.89 an ounce.
Asian stocks were mostly weaker overnight, while European shares were mostly up. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Risk appetite has up-ticked a bit at mid-week, on reports China says it is still open to a trade deal despite the latest U.S. sanctions imposed on that nation this week. There are also reports the U.S. and China may soon reach a limited deal, which President Trump has said he would not accept. Trade negotiations between the world’s two largest economies are taking place in Washington, D.C. this week. Many market watchers are still very skeptical the two nations can reach any kind of trade agreement anytime soon.
The U.S. data point of the day is the Federal Reserve’s FOMC minutes that are due out at 2:00 p.m. eastern time. Federal Reserve Chairman Jerome Powell on Tuesday said in a speech the Fed will be purchasing more securities in an effort to keep short-term lending markets more liquid. The market place deemed his speech Tuesday as leaning toward the dovish side of U.S. monetary policy. Powell gives another speech today. FOMC minutes deemed dovish by the marketplace would likely boost gold and silver prices.
Nymex crude oil prices are firmer and trading around $53.00 a barrel today. Reports said Saudi Arabia’s oil capacity will be back to normal by November, or before, following the early-September missile attack on a major Sauid oil installation. The other key “outside market” sees the U.S. dollar index slightly down in early U.S. trading.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.
Technically, the gold bulls have the overall near-term technical advantage. Still, a four-week-old downtrend line is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,543.30. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at last week’s low of $1,465.00. First resistance is seen at this week’s high of $1,518.80 and then at last week’s high of $1,525.80. First support is seen at the overnight low of $1,505.10 and then at $1,500.00. Wyckoff’s Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage and they are now challenging a four-week-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.94. First resistance is seen at the overnight high of $18.00 and then at $18.25. Next support is seen at the overnight low of $17.72 and then at $17.50. Wyckoff’s Market Rating: 6.0.
By Jim Wyckoff
For Kitco News