Gold, Silver Up As Bargain Buyers Step In
(Kitco News) - Gold and silver prices are moderately higher in early morning trading Wednesday. Bargain hunters are entering the market at mid-week. A weaker U.S. dollar index on this day is also aiding the precious metals market bulls. December Comex gold was last up $6.10 an ounce at $1,281.90. December Comex silver was up $0.14 at $17.08 an ounce.
World stock markets were near steady to mixed overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. There are now perceptions U.S. tax reform legislation could get bogged down in the U.S. Congress. That’s a minor negative for stock markets worldwide, but a minor positive for gold and silver.
A power shake-up in Saudi Arabia last weekend and an attempted missile strike on Saudi Arabia from Iran-backed terrorists has injected a bit of anxiety into the world marketplace this week, which has prompted some safe-haven demand for gold and silver.
Nymex crude oil futures prices are slightly lower and are just above $57.00 a barrel Wednesday morning, after hitting a two-year high on Tuesday. The rally in oil prices the past few weeks has been a bullish underlying element for the raw commodity sector, including the precious metals. However, it will be very tough for Nymex crude to sustain prices at or above $60.00 a barrel.
The other key “outside market” finds the U.S. dollar index slightly lower on a corrective pullback after hitting a nearly four-month high on Tuesday. The dollar index remains in a near-term price uptrend.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
Technically, December gold futures bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the October low of $1,262.80. First support is seen at the overnight low of 1,276.10 and then at $1,270.00. First resistance is seen at last week’s high of 1,285.10 and then at $1,292.90. Wyckoff’s Market Rating: 5.0
December silver bulls and bears are also on a level overall near-term technical playing field. The next upside price breakout objective is closing futures 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 the October low of $16.345. First resistance is seen at this week’s high of $17.27 and then at $17.50. Next support is seen at this week’s low of $16.795 and then at $16.60. Wyckoff's Market Rating: 5.0.