(Kitco News) – Gold and silver prices are modestly lower in early U.S. trading Wednesday. The global trader and investor environment at present is one of scant geopolitical concerns amid a booming U.S. stock market. That’s a bearish scenario for the safe-haven metals. However, such cannot continue indefinitely and veteran metals market bulls are biding their time. December gold futures were last down $3.80 an ounce at 1,465.50. December Comex silver prices were last down $0.07 at $16.975 an ounce.
Asian and European stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins, after setting more record and contract highs overnight. Trading in the U.S. Wednesday will really taper off as the session progresses, ahead of the U.S. Thanksgiving holiday on Thursday.
There is still little risk aversion in the marketplace at present, amid notions the U.S. and China are moving ever closer to a partial trade deal, and as there are no geopolitical flare-ups that are spooking traders and investors. The stock markets worldwide are also benefitting from a very low inflationary environment that makes investing in stocks about the only game in town.
In overnight news, China’s industrial profits fell by the most on record in October—down 9.9%, year-on-year. China’s producer price index was down 1.6% in October, which continues to point to worrisomely low global inflation.
The key “outside markets” today see the U.S. dollar index slightly up. Nymex crude oil prices are near steady and trading around $58.50 a barrel.
It’s a busy day for U.S. economic data Wednesday, as due out include the weekly MBA mortgage applications survey, the second estimate of third-quarter gross domestic product, personal income and outlays, the weekly DOE energy report, the Federal Reserve’s beige book, durable goods orders and the weekly jobless claims report.
Technically, the gold bears have the slight overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,500.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,400.00. First resistance is seen at this week’s high of $1,462.00 and then at $1,465.00. First support is seen at this week’s low of $1,449.60 and then at the November low of $1,446.20. Wyckoff’s Market Rating: 4.5
December silver futures bears also have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at last week’s high of $17.21 and then at $17.35. Next support is seen at this week’s low of $16.78 and then at the November low of $16.615. Wyckoff’s Market Rating: 4.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
