(Kitco News) - Gold and silver prices are up in midday U.S. trading Wednesday, with gold hitting a record high and silver sharply up and at a 14-year high. Safe-have bidding is featured at mid-week as the U.S. government has shut down. December gold was last up $21.50 at $3,894.40. December silver prices were up $0.935 at $47.585.
A very week monthly U.S. ADP jobs report today also boosted the gold and silver markets, as it fell squarely into the camp of the U.S. monetary policy doves, who want to see lower interest rates sooner.
The yellow metal is now in easy striking distance of $4,000.00 an ounce. Gold has soared more than 48% this year, putting it on track for the biggest annual gain since 1979. Silver prices are closing in on the all-time record high of just above $50.00, hit in 1980.
A midnight U.S. government funding deadline passed with no agreement among Congress members, triggering the government's first shutdown in nearly seven years and shuttering the government, aside from essential duties. The shutdown could be prolonged due to a stalemate over health care subsidies, with the White House's budget office ordering agencies to begin executing their plans for a funding lapse. The shutdown would disrupt the jobs of hundreds of thousands of Americans, upend many public services and could have economic effects, including a potential spike in the unemployment rate and delays in key economic data, including this Friday’s Labor Department employment situation report for September.
The key outside markets today see the U.S. dollar index near steady, while crude oil prices are weaker and trading around $62.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.15%.
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 $3,750.00. First resistance is seen at the overnight high of $3,922.70 and then at $3,950.00. First support is seen at the overnight low of $3,880.30 and then at $3,850.00. Wyckoff's Market Rating: 9.0.
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 the overnight high of $47.825 and then at $48.00. Next support is seen at the overnight low of $46.815 and then at this week’s low of $45.96. Wyckoff's Market Rating: 9.0.
(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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