Gold, Silver Prices Down Amid Keener Risk Appetite, Strong Dollar
(Kitco News) - Gold andsilver prices are moderately lower in early U.S. trading Wednesday. Improvingtrader and investor risk appetite in the marketplace at mid-week is bearish forthe safe-haven metals. Also, a stronger U.S. dollar index that scored a newfor-the-move high overnight is weighing on the precious metals markets thisweek. December gold futures were last down $7.50 an ounce at $1,217.80. December Comex silver was last down $0.172 at $14.29 an ounce.
Thejust-released ADP national employment report for October came in at up 227,000jobs. That much better than the reading of up 180,000 that was expected. Goldprices down-ticked a bit further just after the report's release.
Globalstock markets were mixed to mostly higher overnight. U.S. stock indexes arepointed toward higher openings when the New York day session begins. There isstill strong near-term technical evidence the U.S. stock indexes have put inmarket tops. Volatility in the U.S. stock market could still appear at anytime, as seen with Monday afternoon's price swoon.
Todayis the last trading day of the month, which makes it a more important tradingday, from a technical chart perspective.
China'sofficial purchasing managers' index also fell to 50.2 in October from 50.8 inSeptember. The October number is the lowest in two years. A reading below 50.0suggests contraction in the sector.
TheChinese yuan has dropped to a 10-year low against the U.S. dollar this week.There is a debate on whether the Chinese government wants the yuan todepreciate to gain world trade advantages. Or, the government may want to stemthe yuan's slide due to fears of capital flight out of China.
Inanother sign of the stark divergence between the U.S. and European Unioneconomies, the Euro zone reported its unemployment rate for October today, at8.1%. The U.S. rate is 3.7%. Meantime, the Euro zone inflation rate rose to anearly six-year high of 2.2%, basis its latest consumer price index report forOctober issued today.
Theother key outside markets today finds November Nymex crude oil prices firmer ona corrective bounce and trading around $66.50 a barrel after hitting anine-week low on Tuesday.
Thekey U.S. economic data point of the week, if not the month, will be Friday'sNovember employment report from the Labor Department.
U.S.economic data due for release Wednesday includes the weekly MBA mortgageapplications survey, the ADP national employment report, the employment costindex, the ISM Chicago business survey, the weekly DOE liquid energy stocksreport, and the U.S. Treasury quarterly refunding announcement.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bulls have lost their slight near-term technical advantage. Bulls' nextupside price objective is to produce a close in December futures above solidresistance at the October high of $1,246.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at $1,200.00.First resistance is seen at the overnight high of $1,225.00 and then at Tuesday'shigh of $1,232.50. First support is seen at the overnight low of $1,216.10 andthen at $1,210.00. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Decembersilver futures bears have the solid 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 the overnight high of $14.49 andthen at this week's high of $14.78. Next support is seen at the October low of $14.255and then at $14.00. Wyckoff's Market Rating: 2.0.
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.