Gold, silver up as geopolitical concerns linger
(Kitco News) - Gold and silver prices are higher in afternoon U.S. trading Wednesday. There are ongoing geopolitical developments that have many traders and investors still looking to the safe-haven metals as an investment. December gold futures were last up $9.10 an ounce at 1,513.00. December Comex silver prices were last up $0.12 at $17.82 an ounce.
The U.S. data point of the day and maybe the week was the Federal Reserve’s FOMC minutes released this afternoon. The minutes said the U.S. economy is seeing generally more downside risks since the July FOMC meeting. However, the members said the easing of U.S. monetary policy will make for a more positive U.S. economic outlook. Members also said the global economic outlook has deteriorated since July and that geopolitical risks have intensified. They also saw little concern about problematic wage growth or inflation in the wake of the recent U.S. monetary policy easing that included a 0.25% interest rate reduction last month. FOMC members were also divided over the future path of U.S. monetary policy. Markets showed no significant reactions to the FOMC minutes.
Federal Reserve Chairman Jerome Powell on Tuesday said in a speech the Fed will be purchasing more securities in an effort to keep short-term lending markets more liquid. The market place deemed his speech Tuesday as leaning toward the dovish side of U.S. monetary policy. Powell gives another speech today.
Asian stocks were mostly weaker overnight, while European shares were mostly up. The U.S. stock indexes were higher in afternoon trading. Risk appetite up-ticked a bit at mid-week, on reports China says it is still open to a trade deal despite the latest U.S. sanctions imposed on that nation this week. There are also reports the U.S. and China may soon reach a limited deal, which President Trump has said he would not accept. Trade negotiations between the world’s two largest economies are taking place in Washington, D.C. this week. Many market watchers are still very skeptical the two nations can reach any kind of trade agreement anytime soon.
Nymex crude oil prices are near steady trading around $52.50 a barrel today. Reports said Saudi Arabia’s oil capacity will be back to normal by November, or before, following the early-September missile attack on a major Sauid oil installation. The other key “outside market” sees the U.S. dollar index slightly down in afternoon U.S. trading.
Technically, December gold futures prices closed nearer the session high. The bulls have the overall near-term technical advantage but a four-week-old downtrend is still in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the late-September high of $1,543.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at October low of $1,465.00. First resistance is seen at this week’s high of $1,518.80 and then at last week’s high of $1,525.80. First support is seen at today’s low of $1,505.10 and then at $1,500.00. Wyckoff's Market Rating: 6.5
December silver futures prices closed near mid-range today. The silver bulls have the overall near-term technical advantage. However, a four-week-old downtrend is still in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.94. First resistance is seen at today’s high of $18.00 and then at $18.25. Next support is seen at this week’s low of $17.305 and then at $17.00. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed steady at 256.85 cents today. Prices closed near mid-range. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 270.65 cents. The next downside price objective for the bears is closing prices below solid technical support at the September low of 248.20 cents. First resistance is seen at this week’s high of 260.15 cents and then at 262.35 cents. First support is seen at this week’s low of 255.25 cents and then at the October low of 251.50 cents. Wyckoff's Market Rating: 2.5.