(Kitco News) - Gold prices are modestly up and erased earlier gains near midday Tuesday, following some weaker U.S. economic data and amid the specter of a U.S. government shutdown. December gold was last up $12.70 at $3,867.40. The silver market is seeing profit taking. December silver prices were down $0.481 at $46.53.
The U.S. consumer confidence fell in September to a five-month low on growing concerns about job prospects and the broader economy. A gauge of present conditions fell to the lowest level in a year, while a measure of expectations for the next six months also dropped in September.
Meantime, the U.S. jobs and labor turnover survey (JOLTS) showed a slight uptick in job openings.
The U.S. federal government is careening toward a shutdown at midnight, with Democrats and Republicans apparently not close to agreeing on a plan to fund federal operations and both sides blaming each other for the stalemate. Bloomberg said that “with just hours to go until a midnight deadline, the impasse over spending threatens to paralyze many U.S. government operations for only the 14th time in modern history, causing the suspension of services for Americans and paychecks for federal workers. Political fallout could be widespread for both President Donald Trump and Democrats ahead of next year’s critical midterm elections. Although last-minute spending deals have averted several other threatened shutdowns in recent years, the stakes are especially high now, with the White House threatening to fire employees rather than furlough them, and Democratic leaders under intense pressure from progressives in the party to stand up to Trump.” This situation has created some marketplace uncertainty and anxiety, which is bullish for the safe-haven gold and silver markets.
The key outside markets today see the U.S. dollar index slightly down, while crude oil prices are lower and trading around $62.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.13%.
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 $4,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,700.00. First resistance is seen at $3,875.00 and then at this week’s high of $3,899.20. First support is seen at the overnight low of $3,820.60 and then at $3,800.00. 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 $50.00. The next downside price objective for the bears is closing prices below solid support at $44.00. First resistance is seen at $47.00 and then at this week’s high of $47.41. Next support is seen at the overnight low of $45.96 and then at $45.00. Wyckoff's Market Rating: 8.5.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, Gold prices are sharply up in early U.S. trading Monday and hit another record high. Silver prices are also up and notched another 14-year high. The powerful but mature bull market runs in gold and silver are accelerating. That’s one early clue that from a time perspective, major market tops could come sooner rather than later. However, from a price perspective, there still could be much more room on the upside for gold and silver prices during this acceleration phase of the mature bull markets, before they peter out for a while. December gold was last up $40.80 at $3,815.90. December silver prices were up $0.361 at $44.575.
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