(Kitco News) - Gold prices are up just a bit and silver prices are modestly weaker in midday U.S. trading Wednesday. The marketplace has calmed down at mid-week, which has allowed the two precious metals markets to pause, awaiting fresh fundamental developments to drive daily price action. December gold was last up $3.00 at $2,435.00. September silver was down $0.186 at $27.035.
U.S. stock indexes are solidly higher but down from daily highs at midday. Risk aversion has significantly receded at mid-week, after the recent rout in the U.S. and global stock indexes. The rally in global stock markets the past couple days has limited the upside in safe-haven gold and silver, from a competing asset class perspective.
The Bank of Japan further assuaged the marketplace Wednesday when a BOJ official said the BOJ likely won’t raise interest rates more for quite some time. Dow Jones Newswires reports: “A week after Japan’s top central banker shook up global markets with comments about raising interest rates, one of his deputies walked them back Wednesday and promised not to raise rates when markets are unstable.” The BOJ deputy’s comments helped to rally Japan’s stock market and pressured the Japanese yen. The Nikkei stock index gained 1.2% Wednesday after a weaker start to the trading day.
Worries about a broad Middle East war are still near the front burner of the marketplace. Israel is bracing for a major attack from Iran and its proxies after Israel recently assassinated key military officials from Hamas and Hezbollah. This matter could be the next major geopolitical event that rattles the marketplace.
The key outside markets today see the U.S. dollar index higher on a continued rebound after hitting a 4.5-month low Monday. Nymex crude oil prices are solidly higher and are trading around $75.50 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching around 3.9%.
Technically, December gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,537.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at Tuesday’s high of 2,459.50 and then at $2,475.00. First support is seen at the overnight low of $2,318.80 and then at this week’s low of $2,403.80. Wyckoff's Market Rating: 6.5.
September silver futures bears have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $39.355. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at Tuesday’s high of $27.67 and then at $28.00. Next support is seen at this week’s low of $26.595 and then at $26.00. Wyckoff's Market Rating: 3.5.
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