By Jim Wyckoff of Kitco News
Comex gold futures prices are trading steady to slightly higher in quieter trading early Thursday, as traders await fresh, market-moving fundamental inputs to drive the market. December gold last traded up $1.50 an ounce at $1,259.00. Spot gold was last quoted up $1.70 at $1,257.50.

As the month of September progresses, the U.S. and European stock markets are not suffering from serious selling pressure, as many market watchers had anticipated. The months of September and October have been historically bearish months for the stock market. The stability of the stock markets has somewhat limited buying interest in gold recently, as gold is viewed by investors has a safe-haven asset. However, it's still just early September and some stock market turbulence could surface quickly during the next six weeks.

The U.S. dollar index is trading near steady Thursday morning, as trading has been choppy and sideways. U.S. stock indexes are firmer and U.S. Treasuries are weaker, which does suggest a very slight uptick in investor risk appetite so far Thursday.

U.S. economic reports due out Thursday include the trade deficit, weekly jobless claims and the weekly energy stocks report.

The London A.M. gold fixing was $1,253.50 versus the previous London P.M. fixing of $1,255.00.

Technically, Comex gold bulls still have the solid overall near-term and longer-term technical advantage. Prices are still in a six-week-old uptrend on the daily bar chart. There are still no early technical clues to suggest a market top is close at hand.

The next near-term upside price objective for the gold market bulls is to push and close December futures prices above solid chart resistance at the contract and all-time record high of $1,270.60. The bears' next near-term downside price objective is producing a close in December gold futures below solid chart support at last week's low of $1,233.50.

For December gold, shorter-term technical resistance is located at the overnight high of $1,260.50 and then at this week's high of $1,264.70. Buy stops likely reside just above those levels. Sell stops likely reside just below chart support at the overnight low of $1,253.30 and then at $1,250.00. Today's key near-term Fibonacci pivot level for December gold: $1,252.00.

Comex silver futures are weaker Thursday morning on some mild profit-taking pressure from recent gains. December silver last traded down 3.4 cents at $19.975 an ounce. The silver bulls still have the solid overall near-term technical advantage. Silver will continue to generally follow the lead of the gold market.

The next near-term upside price objective for the silver market bulls is to produce a close above solid technical resistance at $21.00 an ounce in December Comex futures. The next downside price objective for the silver bears is to push and close December silver prices below solid technical support at $19.00

December silver finds shorter-term technical resistance at the overnight high of $20.065 and then at this week's high of $20.18. Buy stops likely reside just above those levels. Shorter-term technical support for December silver is located at the overnight low of $19.80 and then at $19.75. Sell stops are likely placed just below those levels. Today's key Fibonacci pivot level for December silver futures is located at $19.61.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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