Gold near steady in quieter dealings; traders need a spark
(Kitco News) - Gold prices are trading near unchanged and silver prices weaker in quieter midday U.S. trading Thursday. Traders are awaiting the next big U.S. economic data point for price direction, likely to be next week’s consumer price index report for August, due out on Wednesday, Sept. 13. Gold and silver markets are in bearish near-term technical postures, which is keeping the two precious metals markets’ bulls very timid. December gold was last up $0.50 at $1,944.70 and December silver was down $0.223 at $23.275.
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U.S. stock indexes are pointed mostly weaker at midday. Trader aned investor risk appetite in the marketplace is not keen at present.
In overnight news, China got more downbeat economic news as the world’s second-largest economy’s exports dropped 8.8% in August, year-on-year and contracting for a fourth consecutive month. China’s imports fell 7.3% in August, year-on-year. However, these numbers were slightly better than market expectations. The recent weaker China economic data is an underlying bearish element for the metals markets, on demand concerns.
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The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are near steady and trading around $87.50 a barrel. The benchmark U.S. Treasury 10-year note yield is presently fetching around 4.27%.
Several Federal Reserve officials are scheduled to give speeches today. Traders will be looking to see if the Fed officials provide any clues on the future direction of U.S. monetary policy.
Technically, December gold futures bears have the overall near-term technical advantage. However, prices are still in a fledgling uptrend on the daily bar chart, but just barely. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,980.20. 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 Wednesday’s high of $1,954.50 and then at $1,965.00. First support is seen at this week’s low of $1,940.00 and then at $1,925.00. Wyckoff's Market Rating: 3.5.
December silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $24.655. 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 today’s high of $23.50 and then at $24.00. Next support is seen at $23.00 and then at $22.585 Wyckoff's Market Rating: 3.5.
December N.Y. copper closed down 220 points at 376.40 cents today. Prices closed near mid-range and hit a two-week low. The copper bears have gained the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 403.75 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 367.00 cents. First resistance is seen at 380.00 cents and then at Wednesday’s high of 384.75 cents. First support is seen at today’s low of 373.90 cents and then at 370.00 cents. Wyckoff's Market Rating: 4.0.