Gold price weaker just ahead of Powell remarks
(Kitco News) - Gold and silver prices are slightly lower in early U.S. trading Wednesday. Amid a lack of major, markets-moving news, precious metals traders are looking to the key outside markets for direction. On this day those markets are leaning bearish as the U.S. dollar index is higher and crude oil prices are lower. December gold was last down $3.90 at $1,969.60. December silver was last down $0.104 at $22.485.
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The marketplace will get some fresh “Fedspeak” today when Federal Reserve Chairman Jerome Powell addresses a conference in Washington, D.C. The speech is scheduled to begin at 9:15 a.m. EST. It is not known if Powell will discuss U.S. monetary policy specifics.
Asian and European markets were mixed in overnight trading. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Risk appetite is creeping back into the general marketplace amid no recent major escalation in the Israel-Hamas war. However, recent downbeat economic data from China will temper the stock market bulls.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are lower and trading around $76.25 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.577%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and monthly wholesale trade inventories.
Technically, the gold futures bulls have the near-term technical advantage. However, a price uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $2,019.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,977.50 and then at Tuesday’s high of $1,985.20. First support is seen at this week’s low of $1,962.80 and then at $1,950.00. Wyckoff's Market Rating: 6.0
The silver bulls have lost their slight overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at the October high of $23.88. The next downside price objective for the bears is closing prices below solid support at $21.50. First resistance is seen at the overnight high of $22.74 and then at $23.00. Next support is seen at the overnight low of $22.275 and then at $22.00. Wyckoff's Market Rating: 5.0.