(Kitco News) – Gold and silver prices are lower in early U.S. trading Wednesday, with gold hitting a five-week low and silver a more-than-two-year low. Eroding crude oil prices at mid-week, a higher U.S. dollar index and rising U.S. Treasury yields are all bearish outside market elements working against the metals markets at present. October gold futures were last down $12.60 at $1,714.80. September Comex silver futures were last down $0.377 at $17.915 an ounce.
The Just-released ADP national employment report for August showed a paltry rise of 132,000 jobs, which was well below the gain of 300,000 that the marketplace expected. The marketplace showed little reaction to the report, which has a recent history of not being a good indicator of Friday morning’s more important employment situation report from the Labor Department. That report is expected to show the key non-farm payrolls growth number at up 325,000 in August versus the July report showing a gain of 528,000 non-farm jobs.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Traders and investors remain tentative at mid-week, following the Federal Reserve’s annual Jackson Hole symposium that saw U.S. Fed officials, including Chairman Powell, lean aggressively hawkish on U.S. monetary policy. Other major central banks of the world are also tightening their monetary policies—all in an effort to tamp down problematic price inflation, even if it slows global economic growth.
Speaking of inflation, the Euro zone got more hot readings as the August consumer price index rose 9.1%, year-on-year, which was slightly above market expectations.
The markets have not reacted much, but are paying close attention to reports that Taiwan’s military fired warning shots at drones, thought to be from mainland China, that were flying close to Taiwan.
The key outside markets today see Nymex crude oil prices solidly lower and trading around $89.00 a barrel. Reports are now indicating OPEC-plus will not cut its collective crude oil production. The U.S. dollar index is higher in early U.S. trading. Meantime, the yield on the 10-year U.S. Treasury note is fetching 3.151%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the Chicago ISM business survey, and the weekly DOE liquid energy stocks report.
Technically, the October gold futures bears have the solid overall near-term technical advantage. Prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,780.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at the overnight high of $1,728.70 and then at Tuesday’s high of $1,743.10. First support is seen at $1,700.00 and then at $1,686.30. Wyckoff’s Market Rating: 2.0.
September silver futures bears have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $19.50. The next downside price objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today’s high of $18.39 and then at this week’s high of $18.83. Next support is seen at today’s low of $17.80 and then at $17.50. Wyckoff’s Market Rating: 1.0.
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