(Kitco News) - Gold and silver prices are higher in midday U.S. trading Wednesday, erasing earlier losses as bullish traders decided to step in and buy the dips on some perceived bargain buying. A modest downturn in the U.S. dollar index is also a friendly outside market development for the precious metals markets at mid-week. February gold was last up $11.10 at $2,679.00 and March silver hit a three-week high and was up $0.468 at $31.97.
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 was scheduled to begin today around 10:00 a.m. New York time.
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 weaker. Nymex crude oil futures prices are near steady and trading around $70.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
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 $2,690.50 and then at $2,700.00. First support is seen at today’s low of $2,654.20 and then at this week’s low of $2,644.50. Wyckoff's Market Rating: 6.0.
March silver futures bulls have the slight overall near-term technical advantage. 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 today’s high of $32.07 and then at $32.50. Next support is seen at $31.57 and then at this week’s low of $30.92. Wyckoff's Market Rating: 5.5.
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