(Kitco News) - Gold and silver prices are sharply up in early U.S. trading Wednesday. Safe-haven demand is featured at mid-week, amid a jittery U.S. stock market and ahead of important U.S. economic data. December gold was last up $50.70 at $4,117.10. December silver prices were up $1.549 at $52.07.
Traders and investors await key U.S. economic releases. Key focal points include the FOMC meeting minutes later today, followed by Thursday’s jobs report from the Labor Department, both of which could provide more clarity on the U.S. interest rate outlook. U.S. agencies have started rolling out economic data delayed by the federal government shutdown. Traders and investors worry that upcoming economic data could limit the Fed’s ability to ease further amid policymakers’ skepticism. Concerns over lofty tech stock valuations have weighed on risk sentiment, enhancing gold and silver’s safe-haven appeal amid the recent stock market sell-off.
Asian and European stock markets were mixed to weaker overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins.
Jittery stock market awaits Nvidia earnings today. Goldman Sachs President John Waldron said stock indexes are primed for possible further declines as investors await the quarterly earnings report from technology leader Nvidia Corp later today. “It strikes me the market could pull back further from here,” Waldron said in an interview on the sidelines of the Bloomberg New Economy Forum in Singapore on Wednesday. “I do think the technicals are kind of more biased for more protection, and more downside.” The S&P 500 is down more than 3% this month, on course for its worst month since March, while volatility has surged. A sell-off in the world’s largest technology companies has reignited a debate on AI, and whether it is generating enough revenue or profit to justify the massive spending on infrastructure. “You’re seeing in the markets right now a pullback, which I think is healthy — markets have run quite a bit this year,” he said on Bloomberg Television. “Markets are heavily focused on this AI dynamic: are we going to get the returns on capital invested that the market expects, and is that priced in? That’s a big debate.” Wall Street’s so-called fear gauge, the Cboe Volatility Index, topped 24 — above the key 20 level that causes concern for traders — and reached its highest in a month.
CFTC COT data out today. The Commodity Futures Trading Commission will resume publishing its Commitments of Traders (COT) reports today and released a schedule for the publication of reports that were interrupted during the lapse in federal government appropriations. The reports will be published in chronological order beginning today at 2:30 p.m. CST. The report will include data from the first missed report, which would have published Oct. 3. To reduce the COT report backlog the CFTC will increase publication frequency, allowing for the backlog to be cleared by the report scheduled for Jan. 23. The schedule is consistent with prior post-government-shutdown publishing.
The key outside markets today see the U.S. dollar index slightly higher. Crude oil prices are lower and trading around $59.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.13%.
Technically, December gold futures bulls’ next upside price objective is to produce a close above solid resistance at the record high of $4,398.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at $4,150.00 and then at $4,200.00. First support is seen at the overnight low of $4,056.10 and then at $4,000.00. Wyckoff's Market Rating: 6.5.
December silver futures bulls have the firm overall near-term technical advantage and their next upside price objective is closing prices above solid technical resistance at the record high of $54.415. The next downside price objective for the bears is closing prices below solid support at $47.50. First resistance is seen at the overnight high of $52.245 and then at $52.50. Next support is seen at $51.00 and then at the overnight low of $50.385. Wyckoff's Market Rating: 7.5
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