Gold Modestly Lower, Continuing Ease

After starting very early trading modestly firmer following weaker levels overnight, the price of gold continued an easing process set in motion on Monday after last week’s three-week high in five straight sessions of gains.

The spot price of gold drifted 0.1 percent to $1,722.91 per troy ounce from Friday’s high around $1,738. U.S. gold futures for December delivery slipped 0.1 percent to $1,722.80 per troy ounce.

The overall market place is more at ease on Wednesday, per the analysis with Forbes. The euro gained overnight against the U.S. dollar, which should support gold demand by holders of other currencies. This may be a reflection on the perception of the European sovereign debt crisis as well, despite the recent batch of dour economic news. Overall industrial production in the euro zone countries fell 2.5 percent in September, per a report out Wednesday. Gross domestic product data of major euro zone countries, a key economic data indicator, is due out on Thursday.

In the U.S., traders and investors will closely watch Wednesday afternoon’s release of the minutes from the most recent meeting of the Federal Open Market Committee, the policy-making meeting of the central bank. Additionally, the ongoing political rhetoric regarding the fiscal cliff, a series of tax hikes and budget cuts set to take effect before the meeting of a new politically divided Congress next year, is affecting market sentiment.

President Barack Obama is scheduled to take questions Wednesday regarding his response to the challenge of the fiscal cliff.

U.S. economic data set for release Wednesday includes the aforementioned FOMC minutes, weekly MBA mortgage applications survey, the Producer Price Index, retail sales, and manufacturing and trade inventories.

The London A.M. gold fixing is $1,724.50 against the previous A.M. fixing at $1,726.25.

Gold bull’s must produce an upside price breakout above solid chart resistance at $1,755.00 per troy ounce as bears experience solid technical resistance at $1,672.50 per troy ounce.

December silver futures bulls hold the overall near-term technical advantage, according to Forbes, with an upside price breakout above solid technical resistance at $33.50 per troy ounce. There is support at the November low of $30.655 per troy ounce.

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