Gold Weaker As Economic Data Pace Picks Up
(Kitco News) - Gold prices are again modestly lower and dropped back below $1,200.00 in early U.S. trading Wednesday. The overall bearish technical charts, combined with no major news developments this week, have allowed the technical sellers to control the market. However, the economic data pace shifts into higher gear starting today. December gold futures were last down $2.80 an ounce at $1,199.40. December Comex silver was last up $0.007 at $14.16 an ounce.
World stock markets were mixed overnight, with European stocks mostly up and Asian equities mostly down. U.S. stock indexes are pointed toward slightly firmer openings when the New York day session begins. There is little risk aversion in the marketplace so far this week, despite some looming trade and secondary currency matters that could upset traders and investors in the near term.
The key U.S. economic reports today are the producer price index for August, which is expected to be up 0.2% from July, and the Federal Reserveâ€™s beige book released this afternoon.
On Thursday the European Central Bank meets and is expected to report it will continue to pull back from years of a very easy monetary policy. The Bank of England also holds is regular monetary policy meeting Thursday.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
Technically, gold bears have the firm overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,220.70. 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 weekâ€™s high of $1,204.80 and then at $1,209.00. First support is seen at this weekâ€™s low of $1,192.70 and then at $1,189.50. Wyckoff's Market Rating: 2.0
December silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at this weekâ€™s high of $14.285 and then at $14.405. Next support is seen at this weekâ€™s low of $13.965 and then at $13.75. Wyckoff's Market Rating: 1.0.