Gold, silver see slight price pressure as risk attitudes improve
(Kitco News) - Gold and silver prices are slightly down in early U.S. trading Wednesday, as trader and investor risk appetite has up-ticked just a bit a mid-week. Rising U.S. Treasury yields are also squelching buying interest in the gold and silver markets this week. October gold futures were last down $2.00 at $1,777.70. September Comex silver futures were last down $0.024 at $20.115 an ounce.
Global stock markets were steady to weaker overnight. U.S. stock indexes are pointed toward higher openings when the New York day session beings. Trader and investor anxiety has somewhat receded at mid-week. U.S. House Speaker Nancy Pelosi visited Taiwan Tuesday evening without incident…yet. China has vowed retaliation over her visit and plans on conducting a large-scale military exercise around Taiwan.
In overnight news, the Euro zone producer price index for June was up 35.8%, year-on-year, due to soaring energy costs in Europe.
U.S. Treasury yields have up-ticked this week as U.S. Federal Reserve officials this week reiterated they plan to keep raising U.S. interest rates to choke off problematic price inflation. The yield on the 10-year U.S. Treasury note is fetching 2.75%.
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The key outside markets today see Nymex crude oil prices higher and trading around $96.00 a barrel. An OPEC-plus meeting Wednesday saw the group raise its collective production by only 100,000 barrels per day, which was deemed as bullish. The U.S. dollar index is slightly higher in early U.S. trading.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. services PMI, the global services PMI, the weekly DOE liquid energy stocks report, the ISM report on business services, and manufacturers’ shipments and inventories.
Technically, the October gold futures bears have the overall near-term technical advantage. However, a fledgling price uptrend is in place on the daily bar chart to suggest a market bottom is in place. 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 the July low of $1,686.30. First resistance is seen at this week’s high of $1,794.80 and then at $1,800.00. First support is seen at the overnight low of $1,761.70 and then at $1,750.00. Wyckoff's Market Rating: 3.0
September silver futures bears have the overall near-term technical advantage. However, a price downtrend on the daily bar chart has been negated, to suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.51 and then at $20.75. Next support is seen at the overnight low of $19.75 and then at $19.40. Wyckoff's Market Rating: 3.0.