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Gold price a bit weaker as FOMC minutes on deck

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(Kitco News) - Gold prices are slightly lower and silver a bit higher in subdued early U.S. trading Wednesday. The marketplace is quieter ahead of the U.S. data point of the week: the FOMC minutes released at 2:00 p.m. EST. December gold was last down $2.80 at $1,737.20 and December silver was up $0.131 at $21.18.

Today is the busiest day for U.S. economic data this holiday-shortened trading week, including the minutes from the last FOMC monetary policy meeting, to be released in the early afternoon. The minutes may contain a few new clues on the future path and timing of Fed monetary policy. U.S. markets are closed on Thursday for the Thanksgiving holiday.

Most global stock markets were slightly up overnight. U.S. stock indexes are headed for slightly higher openings when the New York day session begins. The marketplace remains tentative at mid-week as Covid-19 cases in China continue to rise and are crimping the world’s second-largest economy. Newswire reports this morning quoted Chinese officials as saying they will further ease China’s monetary policies in an effort to produce more economic growth.

Meantime, the Euro zone reported its November manufacturing purchasing managers index (PMI) at 47.3, which was slightly above market expectations and compares to the October reading of 46.4. Still, a reading below 50.0 suggests contraction in the sector. It was the fifth month in a row of manufacturing sector contraction for the Euro zone.

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The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are lower and trading around $79.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently 3.756%.

Other U.S. economic data due for release Wednesday includes the weekly jobless claims report, the weekly MBA mortgage applications survey, durable goods orders, the U.S. flash services and manufacturing purchasing managers indexes (PMI), new residential sales, the University of Michigan consumer sentiment survey and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at the November high of $1,791.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at the overnight high of $1,746.30 and then at this week’s high of $1,755.00. First support is seen at the overnight low of $1,733.00 and then at $1,725.00. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the slight overall near-term technical advantage but have faded. A choppy, 2.5-month-old uptrend is still in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $22.38. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $21.50 and then at $22.00. Next support is seen at $21.00 and then at this week’s low of $20.60. Wyckoff's Market Rating: 5.5.

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.