(Kitco News) - Gold prices are trading close to unchanged in early U.S. action Wednesday. Silver prices are modestly up. Precious metals traders are in a pause mode, awaiting some key U.S. economic data that includes the FOMC minutes this afternoon and inflation reports Thursday and Friday. December gold was last steady at $2,635.00 and December silver was up $0.215 at $30.815.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to weaker openings when the New York day session begins.
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.”
The key outside markets today see the U.S. dollar index a bit firmer. Nymex crude oil prices are near steady and are trading around $73.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.016%.
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. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade, the FOMC minutes 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 $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at this week’s high of $2,679.20 and then at last Friday’s high of $2,690.60. First support is seen at $2,650.00 and then at $2,646.20. Wyckoff's Market Rating: 8.5.
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 $31.50 and then at $32.00. 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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