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Mild price pressure on gold, silver at mid-week

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(Kitco News) - Gold and silver prices are modestly weaker in subdued early U.S. trading Wednesday. The two precious metals markets are languishing at mid-week, with the bulls needing a fresh fundamental spark to ignite their enthusiasm. October gold futures were last down $1.30 at $1,803.70. December Comex silver was last down $0.065 at $23.82 an ounce.

Global stock markets were mostly weaker in overnight trading. The U.S. stock indexes are pointed to modestly higher openings when the New York day session begins. There is less risk aversion in the marketplace so far this week, half-way through what can be the tumultuous month of September.  

In overnight news, China’s industrial output in August was reported up 5.3%, year-on-year, which was slightly below market expectations.

The key outside markets today see the U.S. dollar index lower again. Nymex crude oil futures prices higher, hit a six-week high, and are trading around $71.50 a barrel.  Oil prices have been rising recently as Hurricane Ida’s aftermath sees around 40% of crude oil production in the Gulf of Mexico still off-line, with 48% of natural gas production off-line. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.28%.  

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the Empire State manufacturing survey, import and export prices, industrial production and capacity utilization, and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, October gold futures bulls still have the slight overall near-term technical advantage but need to show more power soon to keep their edge. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,836.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at this week’s high of $1,808.40 and then at $1,815.00. First support is seen at $1,790.00 and then at this week’s low of $1,778.60. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures 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 $22.35. First resistance is seen at $24.00 and then at $24.345. Next support is seen at this week’s low of $23.36 and then at $23.00. Wyckoff's Market Rating: 4.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.