Gold price eases amid global equities gains
(Kitco News) - Gold prices are moderately down in early U.S. trading Wednesday, while silver trades near steady. The precious metals bulls have seen their price rallies pause so far this week, amid upbeat trader and investor risk sentiment that is pushing global stock markets higher. October gold futures were last down $12.20 an ounce at $1,905.60. September Comex silver prices were last down $0.013 at $26.25 an ounce.
Gold saw some added selling pressure when the U.S. durable goods orders report came in much better than expected, at up 11.2% in July, from expectations of a rise of 5.0%. The report sent U.S. Treasury yields higher, also a near-term negative for the metals markets.
Global stock markets were mixed overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins, including the Nasdaq again at a record high. The U.S. stock indexes may be ready to pause at mid-week after hitting record highs in the Nasdaq and S&P 500 this week. The past several weeks have seen generally less volatile and quieter trading conditions, as U.S. and European traders and investors focus more on family vacations and less on markets. Look for more active trading in many stock and financial markets following the U.S. Labor Day holiday.
Traders and investors are watching two big events this week: the U.S. Republican national convention in which President Trump will accept his party’s nomination. So far the convention has not been markets-sensitive. Also, the annual Federal Reserve Symposium that has been traditionally held in Jackson Hole, Wyoming but this year will be virtual, begins Thursday. Fed Chairman Jerome Powell is scheduled to speak Thursday morning. Traders will closely scrutinize his comments on the strength of the U.S. economic recovery and prospects for growth in the coming months.
The important outside markets today see Nymex crude oil prices slightly down and trading around $43.23 a barrel. Hurricane Laura in the Gulf of Mexico is bearing down on Texas and Louisiana and has shut in much of the U.S. Gulf coast oil and gas installations. That has pushed gasoline futures prices to a five-month high this week. The U.S. dollar index is a bit firmer but not far above its recent two-year low. The yield on the U.S. Treasury 10-year note has risen to around 0.7% this week, in another sign of rising confidence in the marketplace.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, durable goods orders, and the weekly DOE liquid energy stocks report.
Technically, the gold bulls still have the firm overall near-term technical advantage, amid a so-far normal downside price correction in a market that is still bullish. Prices are still in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at Tuesday’s high of $1,935.80 and then at this week’s high of $1,961.90. First support is seen at $1,900.00 and then at $1,875.00. Wyckoff's Market Rating: 7.0
September silver futures bulls have the solid overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $29.915 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.58. First resistance is seen at this week’s high of $27.34 and then at $27.635. Next support is seen at last week’s low of $26.095 and then at $26.000. Wyckoff's Market Rating: 7.5.