Gold Down Following Mixed Bag Of US Economic Data
San Francisco (Sept 15) Gold prices ended the U.S. day session moderately lower Thursday. After trading near steady overnight, the precious metal came under selling pressure following a batch of U.S. economic data released Thursday morning. December gold was last down $7.70 an ounce at $1,318.50. December silver was last down $0.011 at $19.055.
While the U.S. economic data Thursday was a mixed bag of better strength and unexpected weakness, the marketplace appeared to focus more on the Philadelphia Fed business survey that showed a sharp improvement in September from August. The general business index that covers the factory sector showed a rise to 12.8 in September from 2.0 in August. The reading was -2.9 in July. The marketplace expected a reading of 0.0. This report falls into the camp of U.S. monetary policy hawks, who want to see an interest rate rise sooner rather than later.
In other news Thursday, the Bank of England is held its regular meeting on monetary policy and made no change in interest rates, as expected. The BOE last month announced new monetary policy stimulus measures.
The world marketplace is looking forward to next week’s meeting of the Federal Reserve’s Open Market Committee (FOMC). Trading may be more subdued ahead of the meeting, which begins next Tuesday and ends next Wednesday afternoon. The markets are putting just slight odds on the prospect of the Fed raising rates at that meeting. The more likely date of a U.S. rate hike would be in December, according to traders and investors. The Bank of Japan also meets to discuss its monetary policy next week.
Technically, December gold futures prices closed nearer the session low today and scored a mildly bearish “outside day” down on the daily bar chart today. The gold bulls have the slight near-term technical advantage but have faded recently and need to show fresh power soon to keep it. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the September high of $1,357.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,305.50. First resistance is seen at $1,325.00 and then at today’s high of $1,332.50. First support is seen at today’s low of $1,312.10 and then at $1,305.50. Wyckoff’s Market Rating: 5.5
Live 24 hours silver chart [ Kitco Inc. ]
December silver futures prices closed near mid-range. The silver market bulls have the slight overall near-term technical advantage, but need to show more power soon to keep it. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the September high of $20.235 an ounce.
Source: KitcoNews
