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Gold, Silver Prices Down; Jackson Hole On Deck

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Thursday, as trader and investor risk aversion is not keen. The metals could also be seeing some position evening from the futures traders ahead of speeches coming from central bankers of the world at the Jackson Hole, Wyoming Federal Reserve symposium that begins today. December gold futures were last down $12.10 an ounce at 1,503.50. September Comex silver prices were last down $0.171 at $16.98 an ounce.

Fed Chairman Jerome Powell is set to give a speech at the Jackson Hole confab on Friday. The Fed and the ECB are leaning easy on their monetary policies. Traders today are awaiting the minutes of the July meeting of the European Central Bank.

Global stock markets were mixed in overnight trading. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Some very slight risk aversion has returned to the marketplace amid new tensions between China and the U.S. China said it would sanction U.S. firms involved in a sale of U.S. fighter jets to Taiwan.

The Chinese yuan further depreciated against the U.S. dollar Thursday, trading around 7.085 and at the weakest level in 11 years.

Purchasing managers’ surveys from Australia and the Euro zone were downbeat today. The Eurozone manufacturing purchasing managers index (PMI) came in at 47.0 in August. A reading below 50.0 suggests contraction in the sector. Importantly, Germany, the workhorse for the Euro zone, saw its manufacturing PMI at only 43.6 in August.

The key “outside markets” today see Nymex crude oil prices firmer and trading around $56.00 a barrel. The U.S. dollar index is slightly higher.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the U.S. flash manufacturing and services PMIs, leading economic indicators and the Kansas City Fed manufacturing survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the August high of $1,546.10. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,488.90. First resistance is seen at today’s high of $1,518.40 and then at this week’s high of $1,523.60. First support is seen at this week’s low of $1,503.00 and then at $1,500.00. Wyckoff's Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the August high of $17.49 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.51. First resistance is seen at this week’s high of $17.175 and then at $17.25. Next support is seen at this week’s low of $16.82 and then at $16.685. Wyckoff's Market Rating: 7.0.

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