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Gold prices see corrective bounce from solid losses Tuesday

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(Kitco News) - Gold prices are modestly up on an upside correction after suffering sharp losses Tuesday. Rallying world stock markets that saw the U.S. indexes score record highs on Tuesday continue to squelch buying interest in the safe-haven metals. December gold futures were last up $4.60 an ounce at 1,488.30. December Comex silver prices were last down $0.058 at $17.51 an ounce.

Asian and European stock indexes were mixed in uneventful trading overnight. U.S. stock indexes are pointed toward steady to slightly higher openings when the New York day session begins.

Trader and investor risk appetite remains upbeat at mid-week, amid no major developments on the U.S.-China trade front and no geopolitical flare-ups. The sense of the marketplace now is that a partial U.S.-China trade deal will be signed soon. The Chinese currency, the yuan, hit a three-month high versus the U.S. dollar this week and dropped back below the key 7-per-dollar level, as Chinese traders also reckon a signed trade deal is close.

In overnight news, the Euro zone October services purchasing managers’ index (PMI) came in at 52.2 versus expectations for a reading of 51.8.

The Euro zone economic workhorse Germany got a better manufacturing report on Wednesday. September manufacturing orders were up 1.3% from August, which handily beat expectations for a rise of just 0.1%. However, manufacturing order in September were down 5.4% from the same time last year.

The key “outside markets” today see the U.S. dollar index weaker. Nymex crude oil prices are near steady and trading around $57.15 a barrel.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, preliminary productivity and costs, the weekly DOE liquid energy stocks report, and the global services PMI.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls still have the overall near-term technical advantage but are fading. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,500.00 and then at Tuesday’s high of $1,511.90. First support is seen at this week’s low of $1,480.70 and then at $1,478.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage but are fading and need to show fresh power soon. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $18.35 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 the overnight high of $18.62 and then at $18.00. Next support is seen at the overnight low of $17.36 and then at $17.18. Wyckoff's Market Rating: 6.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.