Gold prices gain; silver skyrocketing

Gold prices gain; silver skyrocketing by Jim Wyckoff for KitCo News

Gold prices are modestly higher in early U.S. trading Wednesday, while the silver market is again sharply higher and hit a more-than-two-year high overnight. Worries about slowing global economic growth amid falling government bond yields are encouraging traders and investors to seek out safe-haven precious metals. December gold futures were last up $2.10 an ounce at 1,553.80. December Comex silver prices were last up $0.252 at $18.555 an ounce.

Asian and European stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins.

There were no major news developments overnight to move markets. Still, risk appetite is less robust at mid-week as there are storm clouds on the marketplace horizon, including the lingering U.S.-China trade war, Brexit concerns, and weakening global economic growth.

The U.S. Treasury yield curve remains partially inverted at mid-week, as the 2-year note yield is above that of the 10-year note. The inversion is a sometimes harbinger of impending U.S. economic recession.

The key “outside markets” today see Nymex crude oil prices up and trading around $55.75 a barrel. The U.S. dollar index is firmer.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the solid overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,600.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,500.00. First resistance is seen at this week’s high of $1,565.00 and then at 1,575.00. First support is seen at today’s low of $1,541.40 and then at this week’s low of $1,534.80. Wyckoff’s Market Rating: 8.0.

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