Gold, silver prices near steady; ECB meeting awaited
(Kitco News) - Gold and silver prices are trading near steady in early U.S. trading Wednesday. Traders are on hold at mid-week, awaiting central bank meetings that are just over the horizon. The gold and silver bulls have faded recently and need a shot of bullish news. December gold futures were last up $0.60 an ounce at 1,499.80. December Comex silver prices were last up $0.024 at $18.21 an ounce.
Asian and European stock markets were mostly up overnight. U.S. stock indexes are also pointed toward mixed openings when the New York day session begins. Generally, there remains low risk aversion in the world marketplace at mid-week. China has made a positive overture to the U.S. regarding trade when it said it will exempt certain U.S. products from tariffs for one year. This week the U.S.-China trade tensions have appeared to ratchet down a notch.
Focus is turning to the monetary policy meeting of the European Central Bank on Thursday, at which time the ECB is expected to only very slightly cut interest rates, pushing them further into negative territory. The Federal Reserve meets next week and is expected to cut U.S. interest rates by 0.25%.
The key “outside markets” today see Nymex crude oil prices higher and trading just below $58.00 a barrel. Thursday sees a meeting of the OPEC oil cartel. Oil prices have rallied recently on ideas OPEC nations will continue to constrict their spigots. OPEC today cut its world oil demand growth forecast to 1.02 million barrels per day for 2019. The U.S. dollar index is solidly higher in early U.S. trading today.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the producer price index, monthly wholesale trade and the weekly DOE liquid energy stocks report.
Technically, the gold bulls still have the overall near-term technical advantage but have faded and they need to show fresh power this week to keep a three-month-old uptrend 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 September high of $1,566.20. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,475.00. First resistance is seen at Tuesday’s high of $1,509.10 and then at 1,520.00. First support is seen at this week’s low of $1,492.10 and then at $1,488.90. Wyckoff's Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage but have faded recently. Prices are in a three-month-old uptrend on the daily bar chart but now just barely. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at this week’s high of $18.40 and then at $18.50. Next support is seen at $18.00 and then at this week’s low of $17.855. Wyckoff's Market Rating: 6.5.