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Gold price up amid China’s sabre-rattling to Taiwan

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(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Wednesday, on safe-haven demand as China-Taiwan-U.S. tensions have escalated this week. Short covering in the futures market and some fresh chart-based buying are also featured today, as the near-term technical postures for both metals have improved this week. October gold futures were last up $25.70 at $1,792.00. September Comex silver futures were last up $0.436 at $20.34 an ounce.

Global stock markets were mostly slightly up overnight. U.S. stock indexes are pointed toward mildly higher openings when the New York day session beings. The marketplace is a bit more nervous today after China fired several ballistic missiles around Taiwan, in apparent retaliation for U.S. House Speaker Nancy Pelosi’s visit to Taiwan on Tuesday.

The Bank of England’s monetary policy meeting conclusion Thursday saw the BOE raise its key interest rate by 0.5%, the largest since 1995. The BOE also warned of a long economic recession for the U.K. This may also be prompting some safe-haven buying in gold and silver.

The marketplace is looking ahead to Friday morning’s U.S. jobs report for July, which is expected to show non-farm payrolls job growth of around 260,000, compared to a rise of 372,000 in the June report.

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The key outside markets today see Nymex crude oil prices higher and trading around $91.50 a barrel. The U.S. dollar index is slightly lower in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.727%.

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

Live 24 hours gold chart [Kitco Inc.]

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 $1,769.50 and then at this week’s low of $1,759.70. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the overall near-term technical advantage. However, recent price gains suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. 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 $20.00 and then at this week’s low of $19.75. Wyckoff's Market Rating: 3.0.

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.