(Kitco News) – Gold and silver prices are moderately lower in early U.S. trading Wednesday, as trader and investor sentiment remains positive at mid-week. Still, the precious metals market bulls should not be too disappointed in price action so far this week, as it can be argued gold and silver are showing resilience in the face of rallying global stock markets this week. December gold futures were last down $6.50 an ounce at 1,509.20. September Comex silver prices were last down $0.133 at $17.02 an ounce.
Global stock markets were mostly up in overnight trading. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Helping to lift U.S. and world stock markets, President Trump and his administration are on the offensive this week, saying the U.S. is not headed for economic recession. There are rumors swirling around Washington, D.C., that the Trump administration is considering cutting taxes again. Trump confirmed he is considering tax cuts as a way of keeping the U.S. economy strong.
The European marketplace took in stride the resignation late Tuesday of Italian Prime Minister Giuseppe Conte.
The U.S. economic data point of the week so far will be Wednesday afternoon’s release of the minutes from the last meeting of the Federal Reserve’s Open Market Committee (FOMC), which took place July 30-31. Market watchers want to see if the minutes contain any clues on the timing and number of future interest rate cuts.
The U.S. economic data point of the week so far will be Wednesday afternoon’s release of the minutes from the last meeting of the Federal Reserve’s Open Market Committee (FOMC), which took place July 30-31. Market watchers want to see if the minutes contain any clues on the timing and number of future interest rate cuts.
The key “outside markets” today see Nymex crude oil prices firmer and trading around $56.75 a barrel. The U.S. dollar index is slightly higher.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, existing home sales and the weekly DOE liquid energy stocks report.
Technically, the gold bulls have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the August high of $1,546.10. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,488.90. First resistance is seen at today’s high of $1,518.40 and then at this week’s high of $1,523.60. First support is seen at this week’s low of $1,503.00 and then at $1,500.00. Wyckoff’s Market Rating: 7.5
September silver futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the August high of $17.49 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.51. First resistance is seen at this week’s high of $17.175 and then at $17.25. Next support is seen at this week’s low of $16.82 and then at $16.685. Wyckoff’s Market Rating: 7.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
