Price gains for gold; silver bulls charged up
(Kitco News) - Gold prices are modestly up and silver prices are higher and hit a three-week peak in early U.S. trading Wednesday. More short covering by the futures traders and perceived bargain hunting are featured in the two precious metals. The technical posture for silver has significantly improved this week, which is inviting chart-based speculators to the long side of that market. December gold was last up $6.80 at $1,932.70 and September silver was up $0.41 at $23.86.
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Asian and European stock markets were mixed in quieter overnight trading. U.S. stock indexes are pointed to higher openings when the New York day session begins. The dog days of summer are gripping much of the marketplace at mid-week.
In overnight news, the Euro zone composite purchasing managers index (PMI) for August came in at 47.0, compared to a consensus forecast of 48.8 and the July reading of 48.6. A reading below 50.0 suggests contraction.
Traders and investors are looking ahead to the late-week annual Federal Reserve symposium held in Jackson Hole, Wyoming. This meeting usually produces some market-sensitive news from world central bankers’ comments, including Fed Chair Jerome Powell. Powell is scheduled to speak at the confab on Friday.
The key outside markets today see the U.S. dollar index higher, while Nymex crude oil futures prices are lower and trading around $78.75 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching 4.265%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. flash and services purchasing managers indexes, new residential sales, and the weekly DOE liquid energy stocks report.
Technically, the gold futures bears have the firm overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,980.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,938.20 and then at $1,950.00. First support is seen at $1,925.00 and then at this week’s low of $1,913.60. Wyckoff's Market Rating: 3.0.September futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the August low of $22.265. First resistance is seen at the overnight high of $23.87 and then at $24.00. Next support is seen at the overnight low of $23.475 and then at $23.25. Wyckoff's Market Rating: 5.0.