Gold Sees Some Safe-Haven Demand On Trump Troubles
(Kitco News) - Gold prices are moderately higher in early U.S. trading Wednesday and are back above $1,200.00, on some safe-haven demand as U.S. President Trump may be in some legal and political trouble. December gold futures were last up $5.6 an ounce at $1,205.50. September Comex silver was last up $0.029 at $14.795 an ounce.
U.S. and world stock markets were mixed to mostly weaker overnight on some trader and investor anxiety as Trump is in some hot water. Two of his close associates are likely going to jail. This has added a bit of uncertainty to the world marketplace at mid-week. There is talk Trump could pardon those associates, or that he could be impeached. And the mid-term congressional elections are right around the corner.
Also in focus today is the early-afternoon release of the minutes of the last meeting of the Federal Reserve’s Open Market Committee (FOMC). Past FOMC minutes releases have moved markets, although no big revelations are expected in today’s report.
Another highlight of the trading week will be the annual meeting of world central bankers in Jackson Hole, Wyoming, that begins on Friday. Past years’ meetings have produced important proclamations from world central bankers. Fed Chairman Powell is slated to speak at the symposium.
In overnight news, the German government sold a 10-year bund at an average yield of 0.33%, which is a record low. That yield compares to U.S. 10-year Treasury yields that are around 2.83%.
Other U.S. economic data due for release today includes the weekly MBA mortgage applications survey, existing home sales, and the weekly DOE liquid energy stocks report.
Technically, gold bears still have the overall near-term technical advantage amid a price downtrend on the daily bar chart. However, the bears appear to be exhausted to suggest a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,167.10. First resistance is seen at $1,212.50 and then at $1,221.40. First support is seen at the overnight low of $1,199.20 and then at this week’s low of $1,189.60. Wyckoff's Market Rating: 2.5
September 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 $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at the overnight high of $14.875 and then at $15.00. Next support is seen at this week’s low of $14.625 and then at $14.50. Wyckoff's Market Rating: 2.5.