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(Kitco News) – Gold prices are modestly up in midday U.S. trading Wednesday, on some short covering by the shorter-term futures traders and as bullish bargain buyers stepped in to buy the earlier dip in prices. However, the key outside markets are in bearish daily postures for the metals at mid-week and that limited buying interest: a higher U.S. dollar index, rising Treasury bond yields and lower crude oil prices. December gold futures were last up $1.70 at $1,762.70. December Comex silver was last down $0.118 at $22.495 an ounce.
The U.S. data point of the day saw the ADP national employment report for September come in at a better-than-expected rise of 568,000 versus the forecast of up 425,000 jobs, and compared to a gain of 374,000 seen in the August ADP report. The ADP report precedes the more important U.S. employment report from the Labor Department on Friday morning. The key non-farm jobs number in that report is forecast at up 500,000 in September after a paltry gain of 235,000 in August.
Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are lower at midday. Trading has turned choppy in the indexes but near-term price downtrends are in place for the S&P and Nasdaq futures. U.S. lawmakers are still struggling to agree upon a big government spending bill as well as a debt-limit bill. Reports say the Biden administration is willing to reduce the size of the spending bill to get Republicans to agree to it.
Reports said India’s September gold imports in September rose 658% from September of 2020. India imported 91 metric tons of gold in September compared to 12 metric tons in September of 2020. Jewelry makers stocked up as the Indian currency, the rupee, appreciated and gold prices fell.
The key outside markets today see the U.S. dollar index higher and back near last week’s 12-month high. Nymex crude oil futures are down and trading around $77.35 a barrel after hitting a nearly seven-year high overnight. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.517%.
Technically, December gold futures bears have the overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week’s high of $1,771.50 and then at $1,775.00. First support is seen at today’s low of $1,745.40 and then at $1,737.50. Wyckoff’s Market Rating: 3.5
December silver futures bears have the solid overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week’s high of $22.805 and then at $23.00. Next support is seen at today’s low of $22.185 and then at $22.00. Wyckoff’s Market Rating: 2.0.
December N.Y. copper closed down 535 points at 413.95 cents today. Prices closed nearer the session low today. The copper bears have the slight overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the September high of 447.15 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 396.65 cents. First resistance is seen at today’s high of 421.85 cents and then at this week’s high of 430.30 cents. First support is seen at today’s low of 411.40 cents and then at 405.45 cents. Wyckoff’s Market Rating: 4.5.
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