(Kitco News) - Gold and silver prices are lower in early U.S. trading Wednesday, pressured by key outside markets that are in bearish daily postures for the precious metals at mid-week. The U.S. dollar index is firmer and U.S. Treasury yields have up-ticked. Price action in gold and silver markets has turned sideways and choppy the past week. February gold was last down $10.70 at $2,657.20 and March silver was down $0.412 at $31.08.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward firmer openings and record highs when the New York day session begins. The U.S. indexes are at record highs and enjoying a seasonal “Santa Claus rally.”
In overnight news, South Korea’s opposition leaders called for impeachment of President Yoon Suk Yeol after he briefly imposed martial law but then reversed his decision. The South Korean won recovered from losses but the Korean stock market sold off.
Meantime, French President Macron is asking French lawmakers to reject a vote of no confidence that would topple his government. “While markets have been relatively calm, investors fret the turmoil could push up French borrowing costs and weigh on the Euro,” said a Bloomberg report. The no-confidence vote is scheduled to begin today around 10:00 a.m. New York time.
The major world economies will see higher growth rates in 2025, according to the Organization for Economic Cooperation and Development. However, the global economic recovery may be threatened by higher trade tariffs, the OECD said. The latest OECD forecasts assume no changes in trade policies, which is unlikely as U.S. President-elect Donald Trump says he will implement higher tariffs on imports into the U.S. Some countries have already announced retaliation tariffs if the U.S. imposes its own tariffs.
It’s a busy U.S. economic data week, including the monthly employment situation report from the Labor Department on Friday. Non-farm payrolls likely rose by around 200,000 in November, according to a Bloomberg survey. Wednesday, Fed Chairman Jerome Powell participates in a panel discussion. The OPEC oil cartel meets on Thursday.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are slightly higher and trading around $70.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.24%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the U.S. services PMI, the global services PMI, the ISM report on business services, manufacturers’ shipments and inventories, the Federal Reserve beige book and the weekly DOE liquid energy stocks report.
Technically, February gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,748.00. 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 $2,678.50 and then at last Friday’s high of $2,690.50. First support is seen at $2,650.00 and then at this week’s low of $2,644.50. Wyckoff's Market Rating: 6.0.
March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $31.63 and then at $32.00. Next support is seen at this week’s low of $30.51 and then at the November low of $30.095. Wyckoff's Market Rating: 5.0.
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