Gold, silver markets weaker amid upbeat U.S. data and investor attitudes
(Kitco News) - Gold and silver prices are modestly lower in midday U.S. trading Wednesday. The global trader and investor environment at present is one of scant geopolitical concerns amid a booming U.S. stock market. That’s a bearish scenario for the safe-haven metals. However, such cannot continue indefinitely and veteran metals market bulls are biding their time. December gold futures were last down $4.70 an ounce at 1,455.60. December Comex silver prices were last down $0.085 at $16.96 an ounce.
A couple of stronger-than-expected U.S. economic reports also pressured the precious metals markets today. The second revision of third-quarter GDP came in at up 2.1%, year-on-year, which was better than the initial estimate of up 1.9%. Durable goods orders also rose a better-than-expected 0.6% in October from September. Other U.S. data released today were a mixed bag.
Asian and European stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down. The U.S. stock indexes are mixed at midday after setting more record and contract highs overnight. U.S. markets are closed for the Thanksgiving holiday on Thursday.
There is still little risk aversion in the marketplace at present, amid notions the U.S. and China are moving ever closer to a partial trade deal, and as there are no geopolitical flare-ups that are spooking traders and investors. The stock markets worldwide are also benefitting from a very low inflationary environment that makes investing in stocks about the only game in town.
In overnight news, China’s industrial profits fell by the most on record in October—down 9.9%, year-on-year. China’s producer price index was down 1.6% in October, which continues to point to worrisomely low global inflation. This gets a bearish read by the metals markets, as it suggests shrinking demand from consumers and commercial end-users from the world’s second-largest economy and a major metals consumer.
The key “outside markets” today see the U.S. dollar index up. Nymex crude oil prices are lower and trading around $57.75 a barrel.
Technically, December gold futures bears have the overall near-term technical advantage as prices have been trending lower for 11 weeks. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,425.00. First resistance is seen at this week’s high of $1,462.90 and then at $1,475.00. First support is seen at this week’s low of $1,449.60 and then at the November low of $1,446.20. Wyckoff's Market Rating: 4.0
December silver futures bears have the overall near-term technical advantage. Prices have been trending lower for 11 weeks. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at last week’s high of $17.21 and then at $17.50. Next support is seen at this week’s low of $16.78 and then at last week’s low of $16.705. Wyckoff's Market Rating: 4.0.
December N.Y. copper closed down 10 points at 267.65 cents today. Prices closed near mid-range today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 273.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 255.00 cents. First resistance is seen at today’s high of 269.05 cents and then at 270.65 cents. First support is seen at today’s low of 266.45 cents and then at 265.00. Wyckoff's Market Rating: 5.5.