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Gold price near steady as fresh fundamental inputs awaited

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(Kitco News) - Gold prices are trading near unchanged in early U.S. trading Wednesday. The yellow metal is pausing ahead of key U.S. economic data out Friday morning. Silver prices are up on short covering from the futures traders. December gold futures were last down $0.10 at $1,761.70. December Comex silver was last up $0.253 at $22.785 an ounce.

Traders are looking ahead to the U.S. employment report from the Labor Department on Friday morning—arguably the most important U.S. data point of the month. The key non-farm jobs number in that report is forecast at up 500,000 in September after a paltry gain of 235,000 in August. Look for higher market volatility in the immediate aftermath of the jobs report.

Global stock markets were mostly higher in overnight trading. The U.S. stock indexes are pointed to higher openings when the New York day session begins. Trading has been choppy in the indexes but near-term price downtrends are in place for the S&P and Nasdaq futures. Trader and investor risk appetite is a bit more upbeat Thursday as U.S. lawmakers may be close to agreeing on a short-term debt-limit expansion into December. Also, crude oil and natural gas prices have dropped significantly late this week after Russian President Putin announced Russia would help stabilize global energy prices. That news somewhat assuaged nervous Europeans that are heading into winter and worried about securing natural gas or heating oil.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures are down and trading around $76.00 a barrel after hitting a nearly seven-year high earlier this week. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.517%.  

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, monthly retail chain store sales, and consumer credit.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bears have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week’s high of $1,771.50 and then at $1,788.40. First support is seen at the overnight low of $1,756.10 and then at this week’s low of $1,745.40. Wyckoff's Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at $23.00 and then at $23.15. Next support is seen at the overnight low of $22.50 and then at this week’s low of $22.185. Wyckoff's Market Rating: 2.5.

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.