(Kitco News) – Gold prices are down and hit a four-week low in early U.S. trading Wednesday. Some sell stop orders were triggered in the futures market after key near-term technical support levels were breached. Also, the outside markets are in a bearish posture for the precious metals on this day, as crude oil prices are lower and the U.S. dollar index is higher. December Comex gold was last down $10.70 an ounce at $1,335.60. December Comex silver was last down $0.125 at $18.935 an ounce.
Nymex crude oil futures prices are lower in early U.S. trading today. Crude prices are still in a near-term uptrend, however. It appears Nymex oil prices are stuck in a trading range between $40.00 and $50.00 a barrel. Meantime, the other key outside market finds the U.S. dollar index firmer and hovering not far above last week’s seven-week low.
World stock markets were narrowly mixed in quieter trading overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The world marketplace is looking ahead to the Federal Reserve’s annual symposium held later this week in Jackson Hole, Wyoming. Fed Chair Janet Yellen speaks at the event on Friday. While it’s hoped she will shed new light on the timing of any future interest rate increase from the U.S. central bank, many think her speech will not yield much fresh insight.
The marketplace is in the grips of the summer doldrums, which means quieter and lackluster trading conditions in many markets. Such is likely to continue until after the U.S. Labor Day holiday in early September.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the monthly house price index, existing home sales, and the weekly DOE liquid energy stocks report.
(Note: Follow me on Twitter–@jimwyckoff–for breaking market news.)
Wyckoff’s Daily Risk Rating: 2.5 (Trader and investor market risk aversion is not elevated today.)
(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 5, with 1 being least risk-averse (most risk-on) and 5 being the most risk-averse (risk-off).
Technically, December gold futures bulls still have the overall near-term technical advantage but trading has been choppy and sideways. A six-week-old downtrend line is in place on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,374.20. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at the July low of $1,318.50. First resistance is seen at $1,350.00 and then at $1,360.00. First support is seen at $1,330.00 and then at $1,325.00. Wyckoff’s Market Rating: 6.0
December silver bulls and bears are on a level overall near-term technical playing field. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is at this week’s high of $19.385 and then at $19.50. Next support is seen at $18.75 and then at this week’s low of $18.55. Wyckoff’s Market Rating: 5.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow @KitcoNewsNOW
