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Gold, silver prices see normal corrective pullbacks at mid-week

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(Kitco News) - Gold and silver prices prices are weaker in early U.S. trading Wednesday, on routine downside corrections amid price uptrends still firmly in place on the daily bar charts. Don’t be surprised to see the bulls step in to “buy the dips” at some point today, as risk appetite has decreased a bit at mid-week. December gold futures were last down $5.90 an ounce at 1,534.40. December Comex silver prices were last down $0.058 at $18.57 an ounce.

Asian and European stock markets were mostly down in overnight trading. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins.

Traders and investor risk sentiment has up-ticked at mid-week, mainly because of two developments on Tuesday. The first is the harsh rhetoric coming from President Trump in a speech to the United Nations assembly in New York Tuesday morning. Trump slammed China for its unfair trade practices and said the world is no longer embracing “globalization.” Trump said “nationalism” is the new bent among the major countries of the world. Trump’s strong words against China seemingly can’t help but decrease the odds of a substantial U.S.-China trade agreement anytime soon.

The second development Tuesday was that the U.S. House of Representatives is now considering impeaching Trump over what the House says are improper and illegal comments Trump made to a Ukrainian official. Trump responded that he will release the transcript of his comments to the official. Whether Trump actually gets impeached seems unlikely, at this time. However, the inquiry by the House is likely to bog down the U.S. government and could hamstring Trump’s foreign policy agenda, including trade negotiations with China.

Brexit news is near the front burner again after the U.K. Supreme Court ruled that Prime Minister Boris Johnson acted illegally when he suspended Parliament.

Nymex crude oil prices are lower and trading around $56.25 a barrel. The other key outside market today sees the U.S. dollar index trading solidly higher.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential sales and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the solid overall near-term technical advantage as a four-month-old uptrend on the daily bar chart remains in place. 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 the September low of $1,490.70. First resistance is seen at this week’s high of $1,543.30 and then at 1,546.10. First support is seen at Tuesday’s low of $1,522.80 and then at this week’s low of $1,517.90. Wyckoff's Market Rating: 7.0.

solid technical support at $1,500.00. First resistance is seen at today's high of $1,534.40 and then at $1,540.00. First support is seen at today's low of $1,517.90 and then at $1,510.00. Wyckoff's Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the solid overall near-term technical advantage. A four-month-old uptrend is in place on the daily bar chart. 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 the September low of $17.47. First resistance is seen at this week’s high of $18.81 and then at $19.00. Next support is seen at Tuesday’s low of $18.315 and then at $18.25. Wyckoff's Market Rating: 7.0.

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