(Kitco News) – Gold and silver prices traded near steady in early US trade Wednesday. Businessmen are on hold in the middle of the week waiting for central bank meetings that are just over the horizon. Gold and silver bulls have faded lately and need a shot of bullish news. Gold futures in December were last up $ 0.60 per ounce at 1
Asian and European stock markets were largely up overnight. US stock indices are also pointed to mixed openings as the day in New York begins. In general, there is still low risk aversion on the world market in the middle of the week. China has made a positive overture to the US in terms of trade when it said it would exempt certain US products from tariffs for one year. This week, it appears that US-China trade tensions have been hampered.
The focus turns to the monetary policy meeting of the European Central Bank on Thursday, where the ECB is expected to cut rates only slightly, pushing them further into negative territory. The Federal Reserve meets next week and is expected to cut US interest rates by 0.25%.
The most important "outside markets" today see prices for Nymex crude oil higher and trading just under $ 58.00 a barrel. Thursday sees a meeting in the OPEC oil cartel. Oil prices have recently come up with ideas that OPEC countries will continue to narrow their taps. OPEC today cut its oil demand forecast to 1.02 million barrels per day for 2019. The US dollar index is solidly higher in early US trade today.
U.S. economic data to be released Wednesday include the weekly MBA Mortgage Survey, the Producer Price Index, Monthly Wholesale Trade, and the Weekly Liquid Energy DOE Report.
Technically, gold bulls still have the general technical advantage in the near term, but have faded and they need to show new power this week to keep a three month old trend in place in the daily bar chart. The Bulls' next upside target is to produce a close in October futures over solid resistance at the September high of $ 1,566.20. Bears' next long-term downward price trend is to push futures prices in December under solid technical support to $ 1,475.00. First resistance is seen at Tuesday's high of $ 1,509.10 and then $ 1,520.00. First aid can be seen at the lowest of the week at $ 1,492.10 and then at $ 1,488.90. Wyckoff's Market Rating: 6.5
December silver futures bulls have the general technical advantage in the near term, but have faded recently. Prices are in a three-month-old trend on the daily bar chart, but now just barely. Silver Bull's next upside price target is to close prices above solid technical resistance at $ 19.00 an ounce. The next price trend for the Bears is to close the prices under solid support of $ 17.50. First resistance is seen at the week's high of $ 18.40 and then at $ 18.50. Next support is seen at $ 18.00 and then at the week's lowest price of $ 17,855. Wyckoff's market assessment: 6.5.
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