Gold Prices Dip on Profit-Taking, But Bulls Eager to Buy Dip

Gold prices fell in early US trading on Wednesday, affected by short-term futures traders taking profits and long-term liquidation weakness. However, the market seems to have bottomed out, with bulls hoping to buy the dip in the near future. There is still demand for safe-haven assets as the Middle East crisis escalates. Silver prices are close to stable. December gold fell by $20.20 to $2,670.10, and December silver fell by $0.032 to $31.71.

The Bank of England released a study that stated a survey of its banks found a record number viewing geopolitics as the primary risk, which could lead to a "significant adjustment" in stock markets and other markets.

Asian and European stock markets fluctuated overnight. Chinese stock markets are closed this week due to holidays. US stock indices opened lower in New York, following a significant drop in the stock market on Tuesday.

Today, the main external markets saw the US Dollar Index rise. Crude oil prices on the New York Mercantile Exchange are steadily increasing, trading at around $72.50 per barrel. The outbreak in the Middle East has driven up oil prices. However, a headline from Dow Jones Newswires reads: "Oil demand concerns will limit price increases in the long term." The benchmark 10-year US Treasury yield is declining, currently at 3.749%.

US economic data released on Wednesday includes the weekly MBA Mortgage Applications Survey, the ADP National Employment Report, and the US Department of Energy's Weekly Flow Energy Stocks Report.

Technical Analysis for Gold and Silver

Technically, December gold bulls have a strong overall short-term technical advantage. The next upside price objective for the bulls is to close above solid resistance at $2,800.00. The next near-term downside price objective for the bears is to push futures prices below solid technical support at $2,600.00. First resistance is seen at the overnight high of $2,684.50, followed by this week's high of $2,694.70. First support is seen at Tuesday's low of $2,653.80, followed by this week's low of $2,646.20.

December silver futures bulls have a solid overall near-term technical advantage. On the daily bar chart, prices are in a seven-week uptrend. The next upside price objective for the bulls is to close above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is to close below solid support at $30.00. First resistance is seen at $32.00, followed by $32.50. The next support is expected to be at this week's low of $31.155, followed by $31.00.