Gold firmer amid price consolidation after recent spike

(Kitco News) – Gold prices are modestly up and silver prices are slightly lower in early U.S. trading Wednesday. The gold market is seeing some backing and filling on the charts after prices Monday spiked to a record high of $2,152.30, basis February Comex futures. Traders and investors are awaiting key U.S. economic data points that lie just ahead. February gold was last up $5.10 at $2,041.40. March silver was last down $0.081 at $24.465.

Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. A drop in government bond yields this week has put traders and investors in more upbeat moods.  

Traders are starting to look ahead to the U.S. employment situation report on Friday morning—arguably the most important U.S. data point of the month. The November non-farm payrolls number is seen coming in at up 190,000 versus a rise of 150,000 in the October report.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil prices are lower and trading around $71.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.205%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the international trade in goods and services report, revised productivity and costs, and the weekly DOE liquid energy stocks report.

Technically, the gold futures bulls still have the overall near-term technical advantage but became exhausted to suggest a near-term market top is in place. Prices are still in a two-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at the record high of $2,152.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at the overnight high of $2,053.40 and then at $2,072.70. First support is seen at this week’s low of $2,027.60 and then at $2,015.00. Wyckoff’s Market Rating: 6.0

The silver bulls still have the overall near-term technical advantage, but became exhausted to suggest a near-term market top is in place. Prices are still in a two-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing March futures prices above solid technical this week’s high of $26.34. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at the overnight high of $24.715 and then at $25.00. Next support is seen at this week’s low of $24.32 and then at $24.00. Wyckoff’s Market Rating: 6.0.

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