Gold weaker, silver firmer in choppy late-summer trading
(Kitco News) - Gold prices are slightly lower and silver solidly higher in midday U.S. trading Wednesday. Metals traders are seeking the next significant fundamental input, which will likely be Friday morning's U.S. jobs report. October gold futures were last down $1.40 at $1,814.40. December Comex silver was last up $0.249 at $24.255 an ounce.
The first trading day of September saw a busy slate of U.S. economic data released, highlighted by the monthly ADP national employment report for August, which was a miss to the downside, showing a rise of 374,000 jobs, when it was expected to show a gain of 600,000. Gold prices did erase overnight losses on the report, but then traded choppy and on both sides of unchanged later in the session.
Global stock markets were mostly firmer overnight. The U.S. stock indexes are firmer at midday. with S&P 500 and Nasdaq futures at or near record highs. Risk appetite remains robust late this summer. However, it has not gone un-noticed in the marketplace that the calendar has turned to September, which begins a two-month stretch in which history shows stock and financial markets can become more turbulent. But this week is still the last unofficial week of summer, with Americans looking forward to the three-day Labor day holiday weekend. The “rubber will meet the road” for many traders and investors when they come back to work next Tuesday. There is one potential speed bump this week: Friday's U.S. employment situation report from the Labor Department. The August non-farm payrolls component of the jobs report is expected to see growth of 720,000 workers compared to a rise of 943,000 non-farm jobs in July.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are slightly down and trading around $68.35 a barrel. OPEC and its allies were expected to agree to increase crude production by 400,000 barrels a day at today's online cartel meeting. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.316%.
Technically, gold bulls have the overall near-term technical advantage. A price uptrend is in place on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the August high of $1,833.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at this week's high of $1,823.60 and then at $1,833.40. First support is seen at $1,800.00 and then at $1,779.20. Wyckoff's Market Rating: 6.0
December silver prices hit a three-week high today. The silver bears have the slight overall near-term technical advantage. However, prices are now in a fledgling uptrend. 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 August low of $22.295. First resistance is seen at $24.395 and then at $24.75. Next support is seen at $24.00 and then at today's low of $23.775. Wyckoff's Market Rating: 4.5.
December N.Y. copper closed down 915 points at 428.30 cents today. Prices closed nearer the session low today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 458.60 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 396.65 cents. First resistance is seen at 435.00 cents and then at this week's high of 441.80 cents. First support is seen at today's low of 425.60 cents and then at 420.00 cents. Wyckoff's Market Rating: 5.0.