(Kitco News) - Gold and silver prices are lower in early U.S. trading Wednesday, on more profit-taking in the futures markets, prompted in part by bearish outside-market forces at mid-week that include a higher U.S. dollar index and lower crude oil prices. December gold was last down $14.70 at $2,538.20 and September silver was down $0.55 at $29.43.
Better trader and investor risk appetite is creeping back into the marketplace at mid-week, which is also a negative for the safe-haven metals. The Middle East tensions remain high but have not escalated, as many expected, after the weekend military exchange between Israel and Hezbollah. And, Iran has not retaliated since the Israeli assassinations of Iran’s proxy officials. One school of thought is that Iran does not want to directly attack Israel because Iran thinks that would give Israel and its vastly superior air power the green light to take out Iran’s key nuclear installations that most believe are trying to make a nuclear bomb. One Middle East strategist said Israel has been waiting for a good excuse to seriously degrade Iran’s nuclear capabilities.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to steady to slightly lower openings when the New York day session begins. The U.S. stock indexes have made solid rebounds from their August lows. The big event of the week in the stock market is Nvidia’s earnings that are out today.
The key outside markets today see the U.S. dollar index solidly higher on a rebound after hitting an eight-month low earlier this week. Nymex crude oil prices are lower and trading around $74.25 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.812%.
U.S. economic data due out Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,475.00. First resistance is seen at $2,550.00 and then at the overnight high of $2,564.30. First support is seen at the overnight low of $2,535.50 and then at $2,525.00. Wyckoff's Market Rating: 8.0.
September silver futures bulls have the overall near-term technical advantage as prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at $30.00 and then at this week’s high of $30.225. Next support is seen at today’s low of $29.34 and then at $29.00. Wyckoff's Market Rating: 6.0.
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