US Gold futures finished pit trade slightly lower Wednesday. Gold and Silver saw some profit-taking, and some chart consolidation following recent solid gains and ahead of a Key event Thursday.
Dec Gold last traded down 2.20 at 1,693.80 oz.
Spot Gold was last quoted down 4.60 at 1,692.00 oz.
Dec Comex Silver last traded down 0.176 at 32.235 oz.
The market is focused on Thursday's monthly meeting of the European Central Bank. It's expected the ECB will announce a new EU monetary stimulus plan, which would likely be at least initially commodity and stock market Bullish. ECB President Mario Draghi said Tuesday his central bank's purchase of short-dated government bonds is within the bank's mandate. There are rumors Wednesday the ECB would embark on a bond-buying program, to be announced Thursday.
On Friday the important US jobs report for August is released. Many believe a weak jobs report on Friday would open the door wide for a fresh monetary stimulus announcement by the US Federal Reserve at its FOMC meeting in 2 weeks. Forecasts are calling for the Key non-farm payrolls number in Friday's report to come in at + 125,000.
Overnight news was more weak economic data released from Europe Wednesday. The German PMI services report for August was weaker than expected. The Eurozone services PMI for August came in weaker, too. Many economists believe the European Union is headed into a recession.
The US Dollar index traded mixed but was slightly lower in late trading Wednesday. The "Greenback" Bears still have the near-term technical advantage as a 6 wk-old downtrend line is in place on the daily chart.
Crude Oil prices were flat Wednesday. Crude Oil Bulls have the near-term technical advantage.
WTI Crude Oil 95.22 -0.08 (-0.08%)
The precious metals markets continue to look closely at how the 2 Key outside markets trade on a daily.
The London PM Gold fixing is 1,690.00 vs. the prior PM fixing at 1,697.00.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.