Gold, Silver Prices Up As U.S. Dollar Dips, Oil Bounces
(Kitco News) - Gold and silver prices are modestly up in early U.S. trading Wednesday, supported by a weaker U.S. dollar index on this day and by a rebound in the beleaguered crude oil market. December gold futures were last up $2.60 an ounce at $1,223.80. December Comex silver was last up $0.141 at $14.41 an ounce.
Global stock markets were mostly firmer overnight. U.S. stock indexes are also pointed higher at the New York opening, following strong losses on Tuesday that wiped out this year’s gains in the stock indexes. It still appears the U.S. stock indexes have put in at least near-term tops, if not major market tops. If so, that’s bullish for the competing asset class of precious metals.
Today is likely to see a quieter trading session in the U.S., ahead of the U.S. Thanksgiving holiday on Thursday. Many U.S. markets close early Wednesday. Friday is the “Black Friday” sale affair that finds many traders and investors out for the day, shopping for Christmas gift deals.
In overnight news, the Paris-based OECD think tank forecast slowing global economic growth in 2019—to 3.5% from 3.7% in its previous forecast.
The key outside markets today find the U.S. dollar index trading weaker but not far below this month’s 1.5-year high. Meantime, Nymex crude oil futures prices are higher on a corrective rebound from Tuesday’s sharp losses that pushed prices to a 12-month low of $52.77 a barrel.
U.S. economic data due for release Wednesday includes the weekly jobless claims report, the weekly MBA mortgage applications survey, durable goods orders, leading economic indicators, the University of Michigan consumer sentiment survey, existing home sales and the weekly DOE liquid energy stocks report.
Technically, gold bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the November high of $1,239.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,184.30. First resistance is seen at this week’s high of $1,229.50 and then at the November high of $1,239.30. First support is seen at this week’s low of $1,218.50 and then at $1,213.70. Wyckoff's Market Rating: 3.5
December silver futures bears still have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $14.50 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 $14.50 and then at $14.775. Next support is seen at this week’s low of $14.205 and then at $14.00. Wyckoff's Market Rating: 2.0.