Gold prices have seen a slight increase, while silver prices have weakened in midday U.S. trading on Wednesday. The marketplace has steadied mid-week, allowing precious metals to pause as they await new fundamental developments to influence daily price movements. December gold has risen by $3.00, reaching $2,435.00, whereas September silver has dropped $0.186 to $27.035.
U.S. stock indexes are significantly higher, though they have pulled back from their daily peaks by midday. Risk aversion has notably eased mid-week, following the recent downturn in U.S. and global stock indexes. This resurgence in global stock markets over the past few days has limited the upside for safe-haven assets like gold and silver, which face competition from other asset classes.
The Bank of Japan (BOJ) contributed to market stabilization on Wednesday. A BOJ official indicated that the central bank is unlikely to raise interest rates further in the near future. According to Dow Jones Newswires, “A week after Japan’s top central banker shook up global markets with comments about raising interest rates, one of his deputies walked them back Wednesday and promised not to raise rates when markets are unstable.” These remarks helped boost Japan’s stock market and pressured the Japanese yen, with the Nikkei stock index gaining 1.2% after a weaker start.
Geopolitical concerns, particularly regarding potential conflict in the Middle East, remain prominent. Israel is on high alert for a significant attack from Iran and its allies, following the assassination of key military figures from Hamas and Hezbollah by Israel. This situation could emerge as a major geopolitical event impacting the marketplace.
In other key markets, the U.S. dollar index has risen, continuing its rebound after reaching a 4.5-month low on Monday. Nymex crude oil prices are solidly higher, trading around $75.50 a barrel. The benchmark 10-year U.S. Treasury note is yielding approximately 3.9%.
Technical Analysis
Gold (December Futures)
Technically, December gold bulls have a near-term advantage. The next bullish target is closing above the solid resistance at the contract high of $2,537.70. Conversely, bears aim to push prices below the strong support level of $2,350.00. Immediate resistance is at Tuesday’s high of $2,459.50, followed by $2,475.00. Initial support is at the overnight low of $2,318.80 and this week’s low of $2,403.80. Wyckoff’s Market Rating stands at 6.5.
Silver (September Futures)
Silver bears hold the near-term technical advantage, with prices trending downward for the past 2.5 months on the daily bar chart. Bulls’ next objective is to close above the robust resistance at last week’s high of $39.355, while bears aim to close below the strong support level of $26.00. First resistance is seen at Tuesday’s high of $27.67 and then at $28.00. The next support is at this week’s low of $26.595 and then at $26.00. Wyckoff’s Market Rating is 3.5.
