(Kitco News) - Gold prices are slightly up and have erased overnight/early morning losses near midday Wednesday, on some mild safe-haven buying interest. Silver prices are slightly down. December gold was last up $3.00 at $3,436.00. September silver prices were down $0.146 at $38.465.
The gold market sees modest safe-haven demand amid growing concerns about the independence of the Federal Reserve, following the recent strong criticism of Chairman Jerome Powell by President Trump, and then Trump moving to fire a Federal Reserve governor.
Stock market traders are bracing for Nvidia stock’s quarterly earnings report this afternoon after the close. Stock options traders are already preparing for a big impact on the stock market when the world’s largest chipmaker gives an update on sales and profits from its artificial-intelligence products. Nvidia is the world’s most valuable company, at 8% of the S&P 500 index by weighting. Trading action overnight Wednesday and on Thursday will likely be more active and maybe more volatile not only in the stock market but also other financial markets, and possibly including commodities.
Here’s what the marketplace expects from Nvidia this afternoon: For its second-quarter earnings, the chipmaker is expected to report revenue of approximately $46 billion and adjusted earnings per share (EPS) of about $1.01. While these numbers would represent significant year-over-year growth of around 53% for revenue and 49% for EPS, they would also show a slowdown compared to the massive growth rates from the previous year. Industry analysts expect strong results, particularly in the data center segment, but are also watching for clues about future growth and the potential impacts of U.S. export controls on China and broader artificial intelligence concerns. A significant miss on the upside or downside from expectations is likely to be a big markets-mover, not only for Nvidia but other sector stocks, the broad market and even have a spillover effect on financial and commodity markets, including the metals.
Traders and investors will also watch Friday morning’s U.S. personal income and expenditures data, including the inflation readings. The Federal Reserve is said to watch the personal income inflation data closely. The July PCE price index is seen coming in at up 2.6%, year-on-year, with the “core” PCE reading (excluding food and energy) seen coming in at up 2.9%. In the June report, the PCE was up 2.6% and the core PCE was up 2.8% annually.
The key outside markets today see the U.S. dollar index higher but off the daily high, while crude oil prices are firmer and trading around $63.75 a barrel. The yield on the 10-year U.S. Treasury note is presently around 4.25%.
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 the overnight high of $3,444.30 and then at $3,450.00. First support is seen at $3,400.00 and then at this week’s low of $3,396.10. Wyckoff's Market Rating: 6.5.
September silver futures bulls have the firm 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 last week’s high of $39.09 and then at $39.91. Next support is seen at $38.00 and then at $37.50. Wyckoff's Market Rating: 7.0.
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 the overnight high of $3,444.30 and then at $3,450.00. First support is seen at $3,400.00 and then at this week’s low of $3,396.10. Wyckoff's Market Rating: 6.5
September silver futures bulls have the firm 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 last week’s high of $39.09 and then at $39.91. Next support is seen at $38.00 and then at $37.50. Wyckoff's Market Rating: 7.0
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