(Kitco News) - Gold prices are sharply lower near midday Wednesday, on solid profit taking after hitting a five-week high overnight. Better risk appetite in the general marketplace today is a negative for the safe-haven metals. Silver prices are a bit weaker after hitting a nearly 14-year high early on today. August gold was last down $46.30 at $3,396.80. September silver prices were last down $0.18 at $39.39.
Risk appetite is keener at mid-week as the U.S. and Japan announced late Tuesday a trade deal has been reached that will impose 15% tariffs on Japanese imports into the U.S., including automobiles, while Japan will create a $550 billion fund to make investments in the United States. President Trump called the trade deal the “largest ever.”
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil futures are weaker and trading around $65.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.4%.
Technically, August gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $3,476.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,340.00. First resistance is seen at the overnight high of $3,451.70 and then at $3,476.30. First support is seen at this week’s low of $3,351.00 and then at $3,314.30. Wyckoff's Market Rating: 7.0.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $36.00. First resistance is seen $40.00 and then at $40.50. Next support is seen at $39.00 and then at this week’s low of $38.365. Wyckoff's Market Rating: 8.5.
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