Gold, Silver Near Steady; Markets Await Fed Official's Speech
Monday October 17, 2016 08:23
(Kitco News) - Gold and silver prices are hovering near unchanged levels in early U.S. trading Monday. Market participants are looking for new fundamental information to drive the markets. December Comex gold was last down $0.30 an ounce at $1,255.10. December Comex silver was last up $0.029 at $17.475 an ounce.
Federal Reserve Vice Chairman Fischer speaks at a luncheon in New York today. His remarks could be market-sensitive as traders and investors continue to handicap the timing of next rate hike from the Fed.
World bond markets are seeing keener selling interest to start the trading week, led by U.K. gilts, which in turn have been pressured by a weakening British pound. There are growing concerns about the world’s major central banks starting to tighten their monetary policies, which in turn should stoke inflationary price pressures. That’s bearish for bond markets but should be ultimately bullish for the precious metals.
The weaker global bond market prices led to price weakness in global equity markets Monday. A feature in Asian stock market trading was casino-related shares dropping sharply after Chinese authorities arrested 18 people from Crown Resorts and charged them with illegal gambling. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
Nymex crude oil prices are slightly higher Monday morning and trading above $50.00 a barrel. The other key “outside market” finds the U.S. dollar index trading slightly lower after hitting a seven-month high overnight.
U.S. economic data due for release Monday includes the Empire State manufacturing survey, and industrial production and capacity utilization.
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Wyckoff’s Daily Risk Rating: 2.5 (Trader and investor market risk aversion is not elevated today.)
(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 5, with 1 being least risk-averse (most risk-on) and 5 being the most risk-averse (risk-off).
Technically, December gold futures bears have the overall near-term technical advantage. Prices are in a 3.5-month-old downtrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,225.00. First resistance is seen at $1,260.00 and then at last week’s high of $1,266.80. First support is seen at $1,250.00 and then at the October low of $1,243.20. Wyckoff’s Market Rating: 3.5
December silver bears have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at $18.46 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is at last week’s high of $17.855 and then at $18.04. Next support is seen at last week’s low of $17.315 and then at the October low of $17.115. Wyckoff's Market Rating: 3.5.