Gold, silver sharply down on bearish outside market forces
(Kitco News) - Gold and silver prices are sharply lower in midday U.S. trading Wednesday, pressured by a higher U.S. dollar index and lower crude oil prices, as well as rallying global stock markets. There is very little risk aversion in the marketplace at present, and that’s also bearish for the safe-haven metals. October gold futures were last down $35.40 at $1,935.40. December Comex silver prices were last down $1.255 at $27.38 an ounce.
The U.S. data highlight of the day was the ADP national employment report for August, which came in at up 428,000, which was a big miss to the downside. Forecasts were for a rise of just over 1 million jobs. This report precedes the Labor Department’s employment situation report that is due out Friday morning. It’s non-farm payrolls number is seen up around 1.3 million in August. Many believe the ADP report does not accurately reflect what the more important employment report from the Labor Department shows.
Global stock markets were mostly higher overnight. The U.S. stock indexes are higher at midday, with the Nasdaq and S&P 500 hitting more record highs. There remains little risk aversion in the marketplace despite history showing what can be a turbulent two months that lie ahead for the global stock and financial markets. At present, traders and investors are more focused on recent economic data from the world’s major economies that has been generally better than market expectations.
The important outside markets today see Nymex crude oil prices lower and trading around $41.50 a barrel. The U.S. dollar index is higher on a corrective bounce after hitting a two-year low Tuesday. The yield on the U.S. Treasury 10-year note is trading around 0.65% today.
Technically, October gold futures bulls still have the firm overall near-term technical advantage. Prices are still in a five-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at this week’s high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,950.00 and then at today’s high of $1,972.40. First support is seen at $1,925.00 and then at $1,915.00. Wyckoff's Market Rating: 7.0
December silver futures bulls still have the firm overall near-term technical advantage amid a five-month-old price uptrend still in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $29.235 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $28.00 and then at today’s high of $28.54. Next support is seen at $27.00 and then at $26.50. Wyckoff's Market Rating: 7.0.
December N.Y. copper closed down 100 points at 301.85 cents today. Prices closed near mid-range today on a corrective pullback after hitting a 28-month high Tuesday. The copper bulls still have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 320.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 290.00 cents. First resistance is seen at 305.00 cents and then at this week’s high of 309.45 cents. First support is seen at today’s low of 299.90 cents and then at 297.50 cents. Wyckoff's Market Rating: 7.5.