(Kitco News) - Gold and silver prices are solidly higher near midday Wednesday, supported in part by a sell off in the U.S. stock indexes at mid-week and by some fresh technical buying. There may be growing worries among equities traders about the historically turbulent months of September and October that lie just ahead for the U.S. stock market. The marketplace also awaits an important report from the Federal Reserve this afternoon. December gold was last up $27.40 at $3,386.50. September silver prices were up $0.393 at $37.725.
This afternoon’s minutes from the last meeting of the Federal Reserve’s Open Market Committee (FOMC) will be parsed by the marketplace for clues on the near-term trajectory of U.S. monetary policy. Stock and financial markets have been quieter this week, ahead of the annual Jackson Hole Fed symposium that gets into full swing Thursday and is hosted by the Kansas City Federal Reserve. Fed Chairman Jerome Powell speaks on Friday morning and is expected to update the Fed's monetary policy framework. Powell's speech could give the marketplace a new perspective on how much FOMC support there is to lower U.S. interest rates in September.
The key outside markets today see the U.S. dollar index a bit weaker, with crude oil prices modestly up and trading around $62.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.32%.
Technically, December gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $3,319.20. First resistance is seen at $3,400.00 and then at this week’s high of $3,403.60. First support is seen at the overnight low of $3,353.40 and then at $3,350.00. Wyckoff's Market Rating: 6.5.
September silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $39.91. The next downside price objective for the bears is closing prices below solid support at the July low of $36.28. First resistance is seen at $38.00 and then at this week’s high of $38.34. Next support is seen at today’s low of $36.96 and then at $36.50. Wyckoff's Market Rating: 6.5.
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