Gold, Silver Prices Lower On Little Risk Aversion
(Kitco News) - Gold and silver prices are lower in early U.S. trading Wednesday. With little risk aversion among traders and investors at present, the safe-haven metals remain on shaky ground. December gold futures were last down $4.70 an ounce at $1,209.50. December Comex silver was last down $0.129 at $14.77 an ounce.
World stock markets were mixed to lower overnight. European bourses were down as the Euro currency is under some pressure today, following recent gains. U.S. stock indexes are pointed toward narrowly mixed openings and hit new record highs overnight. Traders and investors at present reckon the stock market is the “main game in town” as money keeps flowing into those paper assets—at the expense of hard assets like gold, silver and other raw commodities, except crude oil, which is not far below this year’s highs.
The U.S. is presently negotiating a trade agreement with Canada after reaching a deal with Mexico earlier this week. Part of the investor/trader optimism in the world marketplace this week is due to ideas the U.S. will come to terms with more of its trading partners at some point down the road, and some sooner rather than later.
The key outside markets today find the U.S. dollar index firmer on a corrective bounce after seeing losses earlier this week. Meantime, Nymex crude oil prices are slightly up and trading just below $69.00 a barrel.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the second estimate of second-quarter GDP, pending home sales and the weekly DOE liquid energy stocks report.
Technically, gold bears still have the overall near-term technical advantage but a price downtrend on the daily bar chart has been negated 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 the August low of $1,167.10. First resistance is seen at this week’s high of $1,220.70 and then at $1,225.00. First support is seen at this week’s low of $1,205.80 and then at $1,200.00. Wyckoff's Market Rating: 3.0
December silver futures bears 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 $15.00 and then at this week’s high of $15.07. Next support is seen at $14.555 and then at the August low of $14.405. Wyckoff's Market Rating: 2.5.