(Kitco News) - Gold prices are solidly higher in morning U.S. trading Wednesday, on perceived bargain buying and an upside price correction following the strong losses posted Monday. A weaker U.S. dollar index and an down-tick in U.S. Treasury yields this week are also working in favor of the precious metals market bulls. December gold was last up $25.50 at $2,646.80 and December silver was up $0.025 at $30.43.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The U.S. Thanksgiving holiday is Thursday, which means the rest of this trading week could be more subdued, although there is a big batch of U.S. economic data out today.
In overnight news, the Israel and Hezbollah ceasefire agreement that went into effect has had little impact on the marketplace, as it had been talked about and not unexpected for at least the past week. The agreement does not include Hamas.
In other news, China’s industrial companies saw their profits decline for the third straight month amid worsening producer price deflation and weaker factory output.
The key outside markets today see the U.S. dollar index lower on a continued corrective pullback after hitting a two-year high last Friday. Nymex crude oil futures prices are slightly firmer and trading around $69.00 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently 4.269%.
And it’s a very busy U.S. economic data slate Wednesday, including the weekly MBA mortgage applications survey, the second estimate of third-quarter GDP, including the inflation gauges, preliminary corporate profits, durable goods orders, the advance economic indicators report, the weekly jobless claims report, the Chicago ISM business survey, pending home sales, personal income and outlays, and the weekly DOE liquid energy stocks report.
Technically, December gold bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,723.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at the overnight high of $2,654.80 and then at $2,675.00. First support is seen at the overnight low of $2,627.20 and then at this week’s low of $2,605.30. Wyckoff's Market Rating: 5.5.
December silver futures bears have the slight overall near-term technical advantage. Bears are working to restart a price downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. The next downside price objective for the bears is closing prices below solid support at the November low of $29.75. First resistance is seen at the overnight high of $30.75 and then at $31.00. Next support is seen at $30.00 and then at $29.75. Wyckoff's Market Rating: 4.5,
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