(Kitco News) - Gold and silver prices are higher in early U.S. trading Wednesday, as traders await another busy day of U.S. economic data releases. U.S. trading action is likely to taper off as the day progresses, as traders hit the exit doors early to get a jump on the U.S. Thanksgiving holiday Thursday. U.S. markets are closed Thursday. December gold was last up $14.00 at $4,154.00. December silver prices were up $0.845 at $51.81.
Global stock markets were mixed overnight. U.S. stock indexes are set to open slightly up when the New York day session begins.
Another heavy slate of U.S. economic data is due out today, including the weekly jobless claims report, durable goods orders, the second estimate of third-quarter GDP, the advance economic indicators report, the Chicago ISM business survey, personal income and outlays (including the key inflation gauges), new residential sales, the weekly DOE liquid energy stocks report, and the Federal Reserve’s beige book.
U.S. presidential envoy Steve Witkoff will lead a delegation for talks in Russia next week, a Kremlin official said and as reported by Bloomberg, as President Trump pushes for a deal to end Russia’s war with Ukraine. “As for Witkoff, I can say there is a preliminary agreement that he will visit Moscow next week,” Yuri Ushakov, an aide to Putin, said in a video clip of an interview posted on Telegram Wednesday. “He and some other representatives of the administration involved in Ukrainian affairs.” “If Witkoff arrives, he’ll likely be received by the Russian president,” Ushakov later said, according to the state-run Tass news agency. Trump earlier said that he had dispatched Witkoff to Moscow for a probable meeting with Putin next week, and that the envoy might be joined by Trump’s son-in-law, Jared Kushner, Bloomberg reported. U.S. Army Secretary Dan Driscoll — who has been meeting with the Russians in Abu Dhabi — was directed to talk with the Ukrainians, he said. Trump also told reporters he had no deadline for an agreement but said on social media he wouldn’t meet with the leaders of the two countries until a deal was at least in its final stages.
Traders and investors are once again betting that the Federal Reserve will cut U.S. interest rates again when policymakers meet next month (Dec. 9-10), with markets pricing signaling roughly 80% certainty of a quarter-point rate hike. “The shift in rate sentiment started after last week’s delayed September jobs data and was reinforced by comments from New York Fed President John Williams and San Francisco Fed President Mary Daly. Fed Chair Jerome Powell and his allies are ‘on board with a cut,’ despite pushback from other officials who are more concerned about inflation, and recent soft economic data is expected to convince the rest of the committee,” reported Bloomberg.
White House National Economic Council Director Kevin Hassett is seen as the frontrunner to be the next Federal Reserve chair, according to people familiar with the matter and as reported by Bloomberg. “Hassett is seen as someone who would bring President Donald Trump's approach to interest-rate cutting to the Fed, which Trump has long wanted to control. Trump is known to make surprise personnel and policy decisions, and a nomination is not final until it's made public, according to people familiar with the matter,” said the Bloomberg report.
The key outside markets today see the U.S. dollar index firmer. Crude oil prices are slightly down and trading around $57.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.006%.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, December gold futures bulls’ next upside price objective is to produce a close above solid resistance at the November high of $4,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at $4,175.00 and then at $4,200.00. First support is seen at the overnight low of $4,127.50 and then at $4,100.00. Wyckoff's Market Rating: 6.5.
December silver futures bulls have the firm overall near-term technical advantage. 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 $47.00. First resistance is seen at the overnight high of $52.235 and then at $53.00. Next support is seen at the overnight low of $50.96 and then at $50.00. Wyckoff's Market Rating: 7.5.
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