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Mild price weakness in gold, silver amid bearish charts

Kitco News

(Kitco News) - Gold and silver prices are a bit lower in early U.S. trading Wednesday, as some technical selling is featured amid a lack of fresh fundamental news to drive prices. Gold’s near-term technical posture remains bearish, while silver’s chart posture has deteriorated recently. December gold was last down $1.30 at $1,951.30 and December silver was down $0.093 at $23.78.

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

A feature in the marketplace at mid-week is rising crude oil prices after Saudi Arabia and Russia decided to extend their oil-production cuts. Nymex crude oil futures prices are modestly down and trading around $86.25 a barrel, after hitting a 10-month high on Tuesday. Brent crude oil futures this week pushed above $90 a barrel.

The other key outside market today sees the U.S. dollar index a bit lower after hitting a six-month high on Tuesday. The benchmark U.S. Treasury 10-year note yield is presently fetching 4.24%.

Gold weighed down by higher oil prices following OPEC cuts that are fueling fears the Fed will maintain its hawkish bias longer than expected

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the international trade report, the Johnson Redbook weekly retail sales report, the U.S. services PMI, the ISM report on business services, the IDB/TIPP economic optimism index, the global services PMI and the Federal Reserve’s beige book.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at $1,965.00 and then at Tuesday’s high of $1,972.60. First support is seen at today’s low of $1,947.50 and then at $1,940.10. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls and bears are on a level overall near-term technical playing field but the bears have some momentum. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at the July high of $25.82. The next downside price objective for the bears is closing prices below solid support at the August low of $22.585. First resistance is seen at $24.00 and then at $24.25. Next support is seen at today’s low of $23.675 and then at $23.50. Wyckoff's Market Rating: 5.0.

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.