(Kitco News) - Gold prices are slightly weaker and silver prices slightly firmer in early U.S. trading Wednesday. The markets are pausing ahead of a busy week for U.S. economic reports. The U.S. data point of the week will be by Friday morning’s monthly employment situation report from the Labor Department. The recent downdraft in crude oil prices has the raw commodity bulls spooked at present, including the precious metals bulls. December gold was last down $2.10 at $2,520.90 and December silver was up $0.079 at $28.03.
Asian and European stock indexes were mostly weaker overnight. U.S. stock indexes are pointed to lower openings when the New York day session begins. The U.S. data point of the day Wednesday is the jobs and labor turnover survey (JOLTS) report.
The Bank of Japan has warned it may need to raise interest rates again. That news boosted the yen against the U.S. dollar. It also prompted safe-haven buying of U.S. Treasuries on worries about the “yen carry” trade coming unraveled again.
In other overnight news, the Euro zone producer price index for July came in at down 2.1%, year-on-year, versus expectations for down 2.5%.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are firmer and trading around $70.50 a barrel. Crude overnight dropped to a nine-month low below $70 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.814%.
Other U.S. economic data due out Wednesday includes the weekly MBA mortgage applications survey, the weekly Johnson Redbook retail sales report, the international trade report, the Fed’s beige book, domestic auto sales, and manufacturers’ shipments and inventories.
Technically, December gold bulls have the solid 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 the overnight high of $2,528.40 and then at this week’s high of $2,539.50. First support is seen at the overnight low of $2,502.70 and then at $2,500.00. Wyckoff's Market Rating: 7.5.
December silver futures bulls have lost their slight overall near-term technical advantage. A price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at the August low of $26.885. First resistance is seen at $29.00 and then at this week’s high of $29.35. Next support is seen at this week’s low of $28.055 and then at $28.00. Wyckoff's Market Rating: 5.0
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