(Kitco News) - Gold prices near steady in early U.S. trading Wednesday after hitting another record high overnight of $2,772.60, basis December Comex futures. Silver futures are a bit weaker early today but not far below this week’s 12-year high. Safe-haven demand and bullish charts are keeping a solid floor under the gold and silver markets, with bulls still highly confident more price upside is coming. December gold was last down $0.30 at $2,759.50 and December silver was down $0.381 at $34.66.
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Asian and European stock indexes were mixed overnight, with Asian shares mostly firmer and European stocks mostly weaker. U.S. stock indexes are pointed to modestly lower openings when the New York day session begins.
Safe-haven demand is indeed a major reason for the big rally in gold prices. High tensions in the Middle East and the approaching U.S. presidential elections are creating keener uncertainty in the marketplace.
Reports came out overnight that Iran and Russia my try to prompt violence in the U.S. after the election. The Associated Press said a memo released by the Office of the Director of National Intelligence said both countries “could support violent protests either by covertly organizing events themselves or by encouraging participation in those planned by domestic groups. The aim, the officials wrote, would be to increase division, cast doubt on election results and complicate the transfer of presidential power.”
Meanwhile, “de-dollarization” is a buzzword at this week’s BRICS conference being held in Russia. “Investors will be listening out for any updates on the group’s willingness to proceed with the proposed cross-border payments system. This is designed to bypass the current dollar-dependent arrangement,” said a Trade Nation email dispatch today. De-dollarization moves by countries are also bullish for gold.
The key outside markets today see the U.S. dollar index higher. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.222% and has been on the rise lately. Crude oil prices are lower and trading around $70.25 a barrel.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, existing home sales, the Federal Reserve’s beige book and the weekly DOE liquid energy stocks report. The IMF/World Bank meetings are taking place this week, too.
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 $2,650.00. First resistance is seen at the overnight contract high of $2,772.60 and then at $2,800.00. First support is seen at $2,750.00 and then at this week’s low of $2,728.50. Wyckoff's Market Rating: 9.5.
December silver futures bulls have the strong overall near-term technical advantage. Prices are in an accelerating 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at $35.00 and then at this week’s high of $35.07. Next support is seen at $34.00 and then at this week’s low of $33.66. Wyckoff's Market Rating: 9.0.
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