Gold Firmer Amid Anxious Marketplace
(Kitco News) - Gold prices aremoderately higher in early U.S. trading Thursday, on more safe-haven buyingahead of an uncertain U.S. trading session following Wednesday’s pounding inthe U.S. stock market and steep losses in Asian shares overnight. December gold futures were last up $4.40 an ounce at $1,235.40. December Comex silver waslast up $0.089 at $14.76 an ounce.
Globalstock markets were mixed to lower overnight, following the strong losses inU.S. stock indexes Wednesday that put those indexes into negative territory forthis year. Asian stock markets were mostly lower overnight. China’s and SouthKorea’s stock markets are now in bear market territory, having dropped over 20%from their bull market highs. U.S. stock indexes are pointed toward higheropenings when the New York day session begins. Look for another volatile day inthe U.S. markets.
Thereare near-term technical clues the U.S. stock indexes have put in near-termmarket tops, if not major tops. If that’s indeed the case, it’s a bullishelement for hard assets like the precious metals.
Tradersand investor can point to no one element that is spooking the world marketplace at present. There are geopolitical issues that include the U.S.-Chinatrade war, U.S.-Saudi Arabia tensions over the murdered Saudi journalist, andItaly’s defiance over forming its budget to meet European Union rules. Andthere is creeping inflation in the world economies at present. Most don’t deemthe inflation rates problematic, yet. However, there is a new generation ofworldwide investors that have ostensibly never experienced inflation. So a 3%inflation rate could be spooking them.
Thursday’sEuropean Central Bank regular monetary policy meeting saw no change in EUmonetary policy, as expected. ECB chief Mario Draghi’s press conference couldprovide clues on future moves by the central bank. Also, Draghi could commenton the rift between Italy’s new government and the EU.
TheU.S. economic highlight this week will be the first estimate of third-quarterGDP due out Friday morning. GDP is seen up 3.4% in the third quarter, on anannual basis.
Thekey outside markets today find the U.S. dollar index weaker on a normalcorrective pullback after hitting a nine-week high on Wednesday. Meantime,November Nymex crude oil prices are slightly weaker and trading just below $67.00a barrel. Oil prices fell to a two-month low on Tuesday.
U.S.economic data due for release Thursday includes the weekly jobless claimsreport, durable goods orders, advance economic indicators, and the Kansas CityFed manufacturing survey.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bulls have the near-term technical advantage and gained more power Tuesdayas prices saw a bullish upside “breakout” from the recent sideways tradingrange. Bulls’ next upside price objective is to produce a close in Decemberfutures above solid resistance at $1,275.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at $1,220.00.First resistance is seen at this week’s high of $1,243.00 and then at $1,250.00.First support is seen at $1,228.00 and then at $1,220.00. Wyckoff's MarketRating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Decembersilver futures bears still have the overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Septemberlow of $13.965. First resistance is seen at last week’s high of $14.88 and thenat the October high of $14.95. Next support is seen at this week’s low of$14.54 and then at the October low of $14.255. Wyckoff's Market Rating: 4.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.