(Kitco News) – Gold prices are slightly higher holding just above $2,000 in early U.S. trading Wednesday. Silver prices are also posting slight gains. Both metals have seen their near-term chart postures turn a bit more bullish this week, which is inviting the technical traders to the long sides of gold and silver. There are also reports this week of better physical demand for gold coming from countries like India. December gold was last up $2.30 at $2,003.90. December silver was last up $0.046 at $23.915.

Asian and European markets were mixed to firmer in overnight trading. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins. The U.S. stock indexes this week hit multi-week highs amid better risk appetite in the marketplace. It’s a quieter trading week as the U.S. Thanksgiving holiday is on Thursday, and Friday is typically one of the quietest U.S. trading days of the year. Look for U.S. traders to hit the exit doors early today, to get a jump on the holiday.

The marketplace has quickly digested the minutes from the last FOMC meeting of the Federal Reserve, which were released Wednesday afternoon. The FOMC minutes said the committee members noted the risk of higher-than-expected inflation and weaker-than-expected U.S. economic growth. The FOMC minutes said more evidence is needed before the Fed shifts its stance on U.S. interest rates. The marketplace took that to mean the Fed will continue to pause on its rate hikes for a few months as it weighs incoming economic data. Markets showed little reaction Tuesday afternoon as the minutes contained no surprises.




The key outside markets today see the U.S. dollar index slightly higher after hitting an 11-week low Tuesday. Nymex crude oil prices are lower and trading around $76.75 a barrel. Reports said OPEC may consider more oil-production cuts when the cartel meets this coming weekend in Vienna. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.373%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, durable goods orders, weekly jobless claims, the University of Michigan consumer sentiment survey and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $2,019.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,935.60. First resistance is seen at this week’s high of $2,009.80 and then at $2,019.70. First support is seen at Tuesday’s low of $1,979.90 and then at this week’s low of $1,967.20. Wyckoff’s Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $21.925. First resistance is seen at the November high of $24.22 and then at $24.50. Next support is seen at this week’s low of $23.30 and then at $23.00. Wyckoff’s Market Rating: 6.0.

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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.

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