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AM-Roundup-Gold, silver see price declines as stock markets rally

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JD400   Wednesday, 09/02/20 10:49:43 AM
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AM-Roundup-Gold, silver see price declines as stock markets rally


Jim Wyckoff

Wednesday September 02, 2020 08:20



(Kitco News) - Gold and silver prices are down but well up from their overnight lows in early U.S. trading Wednesday, pressured by rising global stock markets, including new record highs in the U.S. Nasdaq and S&P 500 indexes. There is very little risk aversion in the marketplace at present, and that’s bearish for the safe-haven metals. October gold futures were last down $7.90 at $1,962.60. December Comex silver prices were last down $0.59 at $28.05 an ounce.

It’s a busy day for U.S. economic data at mid-week, with the highlight being the ADP national employment report for August, which was just out and came in at up 428,000, which is a big miss to the downside. Forecasts were for a rise of just over 1 million jobs. Gold and silver prices did pare their overnight losses following the ADP report. This report precedes the Labor Department’s employment situation report that is due out Friday morning. It’s non-farm payrolls number is seen up around 1.3 million in August.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ISM New York report on business, manufacturers’ shipments and inventories, the Federal Reserve’s beige book, and the weekly DOE liquid energy stocks report.

Global stock markets were mostly higher overnight. The U.S. stock indexes are also pointed toward solidly higher openings when the New York day session begins. The Nasdaq and S&P 500 hit more record highs overnight. There remains little risk aversion in the marketplace despite history showing what can be a turbulent two months that lie ahead for the global stock and financial markets. At present, traders and investors are more focused on recent economic data from the world’s major economies that has been generally better than market expectations.

The Euro currency lost some ground overnight after hitting a 1.5-year high Tuesday. A European Central Bank official on Wednesday expressed some concern about the appreciation of the common currency against the U.S. dollar.

The important outside markets today see Nymex crude oil prices slightly higher and trading around $43.00 a barrel. The U.S. dollar index is higher on a corrective bounce after hitting a two-year low Tuesday. The yield on the U.S. Treasury 10-year note is trading around 0.69% today.



Technically, the gold bulls still have the firm overall near-term technical advantage, amid recent choppy trading. Prices are still in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,972.40 and then at this week’s high of $1,992.50. First support is seen at $1,950.00 and then at $1,940.00. Wyckoff's Market Rating: 7.5



December silver futures bulls have the solid overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $30.19 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.80. First resistance is seen at the overnight high of $28.54 and then at $29.00. Next support is seen at $27.50 and then at $27.00. Wyckoff's Market Rating: 7.5.
By Jim Wyckoff

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“May the sun bring you new energy by day, may the moon softly restore you by night. May the rain wash away your worries, may the breeze blow new strength into your being. May you walk gently through the world and know its beauty all the days of your life.”

Apache Blessing


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