Gold weaker at midday in choppy trading
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(Kitco News) - Gold prices are trading moderately lower in midday U.S. dealings Wednesday. Prices have traded both sides of unchanged today in back-and-forth action. Silver prices are sharply down at midday. December gold futures were last down $2.60 at $1,900.40 and December Comex silver was last down $0.58 at $23.86 an ounce.
The gold market appears to be vacillating on the reports the U.S. Congress may be getting closer to a deal on a second stimulus package for Americans. The stock market has rallied on these reports, and that’s a negative for safe-haven gold. However, friendly for gold would be new money pumped into an already bloated U.S. monetary system—which could lead to serious economic problems down the road, including worrisome inflation.
Global stock markets were mostly weaker overnight. The first U.S. presidential debate between President Donald Trump and Joe Biden that took place in Cleveland, Ohio Tuesday night produced unprecedented acrimony but probably did not move the needle much regarding changing voters’ minds. Still, the rancor from both sides that included President Trump saying he did not trust the mail-in voting process and not committing to urge his supporters to remain calm if he lost the election served to inject more uncertainty into the marketplace.
Today’s ADP national employment report for September showed a rise of 749,000 jobs, which beat expectations for a gain of 600,000. Other U.S. economic data on housing was upbeat today, which was also a bit negative for the safe-haven metals.
The ADP report precedes the U.S. economic data point of the week, which is Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%.
Rising Covid-19 infections in major countries heading into colder weather and more inside activities in the Northern Hemisphere have raised more concerns about a second wave of the virus again shutting down businesses and damaging economies.
The important outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are higher and trading around $40.00 a barrel. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.68% today.
Today is the last trading day of the month and of the quarter, making it a more important day from a technical chart perspective.
Technically, December gold futures bulls have the overall near-term technical advantage. However, a six-week-old downtrend is still in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,950.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at $1,910.00 and then at $1,920.00. First support is seen at the overnight low of $1,885.80 and then at $1,874.00. Wyckoff's Market Rating: 6.0
December silver futures bulls have the slight overall near-term technical advantage. However, prices are still trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at this week’s high of $24.545 and then at $25.00. Next support is seen at Tuesday’s low of $23.51 and then at $23.00. Wyckoff's Market Rating: 5.5.
December N.Y. copper closed up 440 points at 303.35 cents today. Prices closed near the session high today. The copper bulls have the solid 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 312.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 279.60 cents. First resistance is seen at 305.00 cents and then at 308.00 cents. First support is seen at today’s low of 297.55 cents and then at this week’s low of 295.50 cents. Wyckoff's Market Rating: 7.5.