Gold Weaker On Chart Consolidation; FOMC Minutes On Deck

(Kitco News) - Gold prices are modestly lower in early U.S. trading Wednesday, on a normalcorrective pullback from recent solid gains that saw prices hit a 10-week highearlier this week. Bulls still have the near-term technical advantage. December gold futures were last down $2.30 an ounce at $1,228.70. December Comex silver was last down $0.016 at $14.685 an ounce.

TheU.S. economic highlight at mid-week will be this afternoon’s release of theminutes from the Federal Reserve’s FOMC meeting that was held inlate-September. Traders and investors will parse the report for clues onfutures direction and timing of U.S. monetary policy, and also focus oncomments on the U.S. economy and inflation.

Globalstock markets were mixed overnight. U.S. stock indexes are pointed toward weakeropenings when the New York day session begins, on corrective pullbacks fromTuesday’s strong gains that began to repair the recent serious chart damage. Dailyvolatility is still elevated compared to recent weeks and months.

Therift between the U.S. and Saudi Arabia regarding a missing Saudi journalist whomany think was killed by the Saudi Kingdom remains near the front burner of themarketplace. The U.S. Secretary of State was in Saudi Arabia talking to theking and now is in Turkey to see its president. According to news reports, theSaudi king could be caught up in a cover-up of the reporter’s murder. PresidentTrump said there would be “severe punishment” of the Saudi Kingdom if it isdetermined it was complicit in the death of the journalist. There is a lot at stake for both sides.

Thekey outside markets today find the U.S. dollar index higher. Meantime, NovemberNymex crude oil prices lower and trading just around $71.50 a barrel.

U.S.economic data due for release Wednesday includes the FOMC minutes, the weeklyMBA mortgage applications survey, new residential construction and the weeklyDOE liquid energy stocks report.

Technically,gold bulls have the near-term technical advantage and their next upside priceobjective is to produce a close in December futures above solid resistance at $1,250.00.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,200.00. First resistance is seen at this week’shigh of $1,236.90 and then at $1,240.00. First support is seen at the overnightlow of $1,223.70 and then at this week’s low of $1,220.40. Wyckoff's MarketRating: 6.0

Decembersilver futures bears still have the overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Septemberlow of $13.965. First resistance is seen at this week’s high of $14.88 and thenat the October high of $14.95. Next support is seen at $14.50 and then at theOctober low of $14.255. Wyckoff's Market Rating: 3.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com 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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