(Kitco News) - Gold prices are higher near midday Wednesday and scored more new record highs. Silver prices are firmer, too, and hit another 14-year high. Safe-haven demand is featured in the two precious metals this week as the stock-and-financial-market-turbulent months of September and October are now at hand. December gold was last up $37.50 at $3,630.10. December silver prices were up $0.318 at $41.91.
U.S. economic data Wednesday saw the JOLTS job openings report weaker. The report, covering June data, showed U.S. job openings fell to 7.437 million, which is a slight decrease from the previous month and the lowest level since April. The report also indicated that the labor market is slowing, with hires declining. The report favored the U.S. monetary policy doves and also the gold and silver market bulls.
Global bonds yields are on the rise (lower prices) mostly due to worries about inflation, government debt sales and fiscal discipline. That’s also a bullish element for safe-haven gold and silver, even though rising bond yields are not. U.S. Treasury yields have advanced, with the 30-year bond now approaching the 5% level, while yields on U.K., Australian and Japanese bonds are also increasing. The sell off reflects traders' concerns around heavy government spending and the potential inflationary fallout, with a Bloomberg gauge of global bond returns falling 0.4% on Tuesday. Veteran market watchers know that history shows the months of September and October can be rough for the stock, financial and currency sectors—which in turn can negatively impact agricultural markets.
The key outside markets today see the U.S. dollar index lower, with crude oil prices lower and trading around $63.75 a barrel. The yield on the U.S. Treasury 10-year note is presently 4.23 percent.
Technically, December gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,500.00. First resistance is seen at $3,650.00 and then at $3,675.00. First support is seen at today’s low of $3,592.40 and then at $3,550.00. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $38.00. First resistance is seen at today’s high of $42.29 and then at $42.50. Next support is seen at $41.00 and then at this week’s low of $40.555. Wyckoff's Market Rating: 8.5.
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