(Kitco News) - Gold prices are a bit weaker in midday U.S. trading Wednesday and seeing mild pressure from bearish outside-market forces. Silver prices are slightly up. Precious metals traders are in a pause mode, awaiting some important U.S. economic data that includes the FOMC minutes this afternoon and inflation reports Thursday and Friday. December gold was last down $3.90 at $2,631.50 and December silver was up $0.14 at $30.74.
The key outside markets today see the U.S. dollar index higher and hitting a seven-week high. Nymex crude oil prices are weaker and trading around $73.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching around 4.015%.
Traders are awaiting this week’s latest U.S. inflation data, in the form on the consumer price index on Thursday and the producer price index on Friday. September CPI is seen coming in at up 2.3% annually, compared to a 2.5% rise in the August report. Friday’s PPI is seen coming in up 0.1 percent, month-on-month, compared to up 0.2% in the August report.
U.S. stock indexes are higher at midday.
The highly anticipated economic briefing by China’s National Development and Reform Commission Tuesday has underwhelmed China’s markets, offering little new in the way of new stimulus measures. China’s Shanghai Composite lost 6.6% Wednesday, while the CSI 300 fell over 7%. Hong Kong’s Hang Seng also closed 1.7% lower after Tuesday’s 9% loss. Said David Morrison from Trade Nation in an email dispatch today: “There was astonishment and widespread disappointment at the paucity of the measures announced (by China). These fell well short of expectations and so risk undoing the positive reaction that met the initial news that stimulus was on its way.” This is also slightly bearish for the precious metals.
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 the contract high of $2,708.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,572.50. First resistance is seen at today’s high of $2,642.90 and then at $2,650.00. First support is seen at today’s low of $2,622.80 and then at $2,610.00. Wyckoff's Market Rating: 7.5.
December silver futures bulls have the overall near-term technical advantage. Prices are still in a two-month-old uptrend on the daily bar chart but bulls need to show fresh power soon to keep it alive. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at $31.00 and then at $31.50. Next support is seen at this week’s low of $30.345 and then at $30.00. Wyckoff's Market Rating: 6.5.
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