(Kitco News) - Gold and silver prices are weaker in early U.S. trading Wednesday. Run-of-the-mill profit taking is featured after gold this week hit a record high and silver a 14-year high. December gold was last down $17.50 at $3,798.20. December silver prices were down $0.333 at $44.275.
Global stocks were mixed overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins, after setting record highs Monday.
In overnight news, Federal Reserve Chair Jerome Powell said in a speech Tuesday the outlooks for the U.S. labor market and inflation face risks, calling it a "challenging situation." Powell said "near-term risks to inflation are tilted to the upside and risks to employment to the downside — a challenging situation" and that "two-sided risks mean that there is no risk-free path." Powell denied the central bank has acted politically in its policy decisions, saying "we're looking at what's the best thing for the people that we serve." Powell offered no hints on whether he might support a rate cut at the Fed’s next FOMC meeting in October.
Argentina expects financial assistance in the form of accelerated funding from international lenders, including the World Bank and Inter-American Development Bank, according to a Bloomberg report. The U.S. this week made a public commitment to help Argentina, with Treasury Secretary Bessent saying the U.S. would do whatever it took to help Argentina. The pledged support may help stabilize the Argentine peso, which has slumped in recent weeks, “but it is unclear if it will be enough to placate the market or support President Javier Milei's economic reforms,” said Bloomberg. The international lender assistance is “a far cry from the more substantial boost hinted at by the U.S. to reverse the peso’s major slump.” The World Bank and Inter-American Development Bank announced on Tuesday they will free up money that had already been promised to Argentina, or send it more quickly, so President Javier Milei could put it to work faster. On Tuesday, President Trump did offer help, sitting next to Milei on the sidelines of the United Nations General Assembly in New York. Trump added he did not think Argentina’s government required a bailout. Neither Trump or Bessent have detailed whether more aid is on the way, leaving open the question of whether the World Bank and IDB moves will be enough to placate the market. The Argentine peso rallied nearly 4% Tuesday, following a steep fall last week on fears Milei is losing traction with his economic turnaround plan.
The key outside markets today see the U.S. dollar index solidly up, while crude oil prices are up and trading around $64.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.10%.
U.S. economic data due for release today includes the weekly MBA mortgage applications survey, new residential sales and the weekly DOE liquid energy stocks report.
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 $3,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,650.00. First resistance is seen at this week’s high of $3,824.60 and then at $3,850.00. First support is seen at Tuesday’s low of $3,772.40 and then at this week’s low of $3,718.10. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the strong 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 $41.00. First resistance is seen at this week’s high of $44.77 and then at $45.00. Next support is seen at $43.97 and then at this week’s low of $43.37. Wyckoff's Market Rating: 9.0.
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