Gold prices are seeing a mild downside technical correction following the strong gains posted Wednesday. There is also a bit less risk aversion in the market place Thursday, which is not bullish for the safe-haven gold market. December Comex gold was last down $1.30 at $1,305.40 an ounce. Spot gold was last quoted down $0.30 at $1,306.00. December Comex silver last traded down $0.018 at $20.075 an ounce.

In overnight news, reports said Russia has retaliated against the West’s sanctions by imposing its own: banning imports of many food items from the West. The Russia-Ukraine territorial crisis and the sanctions imposed have caused renewed geopolitical uncertainty this week, which has helped to pressure world stock markets. Gold posted solid gains and U.S. Treasury bond futures hit a contract high Wednesday. Meantime, the U.S. dollar index Wednesday hit a nine-month high. These markets were supported on safe-haven demand amid the heightened geopolitical concerns this week.

There is a European Central Bank monetary policy meeting Thursday, including a press conference from ECB president Mario Draghi. The ECB did not make any major policy moves. However, as usual, the market place wants to hear Draghi’s comments, which may provide clues on futures ECB action.

The sell-offs in the U.S. stock indexes recently are the strongest technical evidence yet that the indexes have put in at least near-term market tops. How the stock indexes close on Friday—near their weekly highs or near their weekly lows—will provide more technical evidence on whether that major bull run in the U.S. stock market has finally come to an end.

U.S. economic data due for release Thursday includes the weekly jobless claims report, ICSC chain store sales trends, and consumer installment credit.

Wyckoff’s Daily Risk Rating: 6.0 (The market place is today somewhat focused on the still-simmering geopolitical matters, namely the Russia-Ukraine crisis.)

(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 $1,302.00 versus the previous A.M. fixing of $1,306.50.

Technically, gold bulls and bears are now on a level near-term technical playing field following the solid gains posted Wednesday. A four-week-old downtrend line was negated Wednesday. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,328.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,281.00. First resistance is seen at Wednesday’s high of $1,309.90 and then at $1,315.00. First support is seen at the overnight low of $1,303.00 and then at $1,300.00.  

December silver futures bears still have the near-term technical advantage as prices are in a four-week-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $20.70 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.50. First resistance is seen at the overnight high of $20.19 and then at $20.35. Next support is seen at this week’s low of $19.835 and then at $19.75.

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