Gold Weaker On Chart Consolidation; FOMC Minutes On Deck

(Kitco News) – Gold prices are modestly lower in early U.S. trading Wednesday, on a normal corrective pullback from recent solid gains that saw prices hit a 10-week high earlier this week. Bulls still have the near-term technical advantage. December gold futures were last down $2.30 an ounce at $1,228.70. December Comex silver was last down $0.016 at $14.685 an ounce.

The U.S. economic highlight at mid-week will be this afternoon’s release of the minutes from the Federal Reserve’s FOMC meeting that was held in late-September. Traders and investors will parse the report for clues on futures direction and timing of U.S. monetary policy, and also focus on comments on the U.S. economy and inflation.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins, on corrective pullbacks from Tuesday’s strong gains that began to repair the recent serious chart damage. Daily volatility is still elevated compared to recent weeks and months.

The rift between the U.S. and Saudi Arabia regarding a missing Saudi journalist who many think was killed by the Saudi Kingdom remains near the front burner of the marketplace. The U.S. Secretary of State was in Saudi Arabia talking to the king and now is in Turkey to see its president. According to news reports, the Saudi king could be caught up in a cover-up of the reporter’s murder. President Trump said there would be “severe punishment” of the Saudi Kingdom if it is determined it was complicit in the death of the journalist. There is a lot at stake for both sides.

The key outside markets today find the U.S. dollar index higher. Meantime, November Nymex crude oil prices lower and trading just around $71.50 a barrel.

U.S. economic data due for release Wednesday includes the FOMC minutes, the weekly MBA mortgage applications survey, new residential construction and the weekly DOE liquid energy stocks report.

Technically, gold bulls have the near-term technical advantage and their next upside price objective is to produce a close in December futures above solid resistance at $1,250.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,236.90 and then at $1,240.00. First support is seen at the overnight low of $1,223.70 and then at this week’s low of $1,220.40. Wyckoff’s Market Rating: 6.0

December silver futures bears still have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at this week’s high of $14.88 and then at the October high of $14.95. Next support is seen at $14.50 and then at the October low of $14.255. Wyckoff’s Market Rating: 3.5.

By Jim Wyckoff
For Kitco News


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