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Gold price near steady on huge U.S. data-dump day

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(Kitco News) - Gold prices are trading not far from unchanged in early U.S. trading Wednesday as traders are bracing for one of the biggest U.S. report days in recent memory. The bulls have faded this week and need to step up and show power very soon to avoid serious near-term technical damage. December gold was last up $0.80 at $1,784.30 and December Comex silver was last up $0.10 at $23.535 an ounce.

U.S. data releases Wednesday include the weekly MBA mortgage applications survey, the second estimate of third-quarter GDP, advance economic indicators, durable goods orders, weekly jobless claims, personal income and outlays, new residential sales, the University of Michigan consumer sentiment survey, the weekly DOE liquid energy stocks report, and the FOMC minutes from the last Fed meeting. Probably the most closely watched figure is the personal consumption expenditures (PCE) index from the GDP report, which came in at up 5.3% from the second quarter—right in line with market expectations. That inflation reading is said to be very closely watched by Federal Reserve officials. A close second will be the FOMC minutes. The data just released was a mixed bag, but generally upbeat, and had little impact on the metals or other markets.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to lower openings when the New York day session begins.

Rising Covid-19 cases in Europe and Asia continue to prompt risk aversion in the marketplace. Austria is on a virtually complete lockdown and German officials are warning Covid cases are rising at an alarming rate.

Traders are closely watching the Turkish lira this week, which has dropped sharply to a record low against the U.S. dollar. Turkey’s president forced its central bank to lower its main interest rate recently despite rising inflation concerns. That sent the lira into a downward spiral. The lira did rebound a bit Wednesday.

The U.S. Thanksgiving holiday is on Thursday and markets are closed in the U.S.. There is an abbreviated trading session Friday and that’s historically one of the lowest-volume trading days of the year.

The key outside markets today see the U.S. dollar index higher and hitting another 15-month high overnight. Nymex crude oil prices are near steady and trading around $78.50 a barrel. The yield on the U.S. Treasury 10-year note is presently fetching 1.657%.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. A seven-week-old uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $1,850.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,758.50. First resistance is seen at the overnight high of $1,796.20 and then at $1,800.00. First support is seen at $1,775.00 and then at $1.758.50. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. A seven-week-old uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at the November high of $25.49 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at the overnight high of $23.695 and then at $24.00. Next support is seen at this week’s low of $23.28 and then at the November low of $23.045. 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.