Chart-based buying and some safe-haven demand are boosting gold prices in early U.S. trading Wednesday. And the big economic data point of the week is at hand. August Comex gold was last up $9.90 at $1,326.40 an ounce. Spot gold was last quoted up $5.40 at $1,325.50. December Comex silver last traded up $0.186 at $21.260 an ounce.

Overall, it’s been a quieter trading affair in many markets this week, amid a lack of major world economic news released so far. The focal point for the market place this week is the FOMC meeting minutes from the Federal Reserve that are due out Wednesday afternoon. Market prices have been very sensitive to Fed data releases in recent years. Traders and investors will look at this latest Fed data for early clues on just when the Fed might decide to raise its interest rates.

A feature on Tuesday was the sell-off in the U.S. stock market that has many wondering if the long-anticipated downside correction is finally at hand for the major and mature bull market run in equities. Early technical clues the U.S. stock indexes have peaked would be two solid down-days in a row, or a bearish weekly low close on a Friday. But at present the stock market bulls still possess the solid overall near-term technical advantage amid longer-term price uptrends on the charts. When the air does finally come out of the highly inflated stock market balloon—which it will—the other competing asset classes will likely benefit, including raw commodities.

Traders and investors are keeping a closer eye on the Middle East, as Israel has launched a military offensive on the Gaza strip. Gold may be seeing some safe-haven demand due to the latest military action by Israel. This situation is a potential powder-keg that could further incite unrest in other parts of the Middle East.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly DOE liquid energy stocks report, and the FOMC minutes.

Wyckoff’s Daily Risk Rating: 6.0 (The two major geopolitical events of recent weeks and months—the Ukraine-Russia conflict and the Iraqi civil war—have not seen any major developments recently. However, the Israeli offensive in Gaza is a concern to the market place at present.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 10, with 1 being least risk-averse (most risk-on) and 10 being the most risk-averse (risk-off), and 5 being neutral.

The London A.M. gold fix is $1,322.50 versus the previous P.M. fixing of $1,323.00.

Technically, August gold futures bulls have the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,334.90. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at the overnight high of $1,328.30 and then at $1,334.90. First support is seen at the overnight low of $1,318.70 and then at this week’s low of $1,312.10.  

December silver futures bulls have the near-term technical advantage.  Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $21.825 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $20.00. First resistance is seen at the overnight high of $21.29 and then at last week’s high of $21.385. Next support is seen at the overnight low of $21.13 and then at this week’s low of $20.945.

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