Gold prices were slightly higher in the early U.S. session on Wednesday, after hitting a record high of $2,694.90 overnight, based on December New York Mercantile Exchange futures. Silver prices fell slightly due to a pullback from recent strong gains. Safe-haven buying provided support for both precious metals markets. Technical charts are also firmly bullish for gold and silver. December gold rose $4.90 to $2,681.90, while December silver fell $0.17 to $32.26.

Asian and European stocks were mixed overnight. Chinese stocks rebounded after the People's Bank of China further eased monetary policy. U.S. stock indices opened slightly lower at the start of trading in New York. The S&P 500 index is close to its historical high.

On Tuesday, China lowered the one-year medium-term lending rate from 2.3% to 2.0%. The move was not unexpected. The People's Bank of China also provided 300 billion yuan ($43 billion) in loans to financial institutions. Further monetary policy easing by the Chinese central bank for the listed economy is expected. This is bullish for the raw materials commodity industry, including metals, from the demand perspective of the world's second-largest economy.

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Meanwhile, the Riksbank of Sweden lowered its key policy interest rate by 0.25% today, to 3.25%. Further rate cuts by the Riksbank are expected this year.

The military conflict between Israel and Hezbollah has recently escalated, with Israel's airstrikes on Lebanon this week being called the worst since 2006. Hezbollah retaliated by firing missiles into Israel, most of which were intercepted by the Israeli defense department. Reports indicate that Hezbollah fired a missile deep into Israel, demonstrating the group's missile capabilities. This situation keeps safe-haven buying for gold and silver intact and could get worse before it gets better.

Today, the U.S. dollar index is considered stable by the major external markets. New York Mercantile Exchange crude oil prices are lower, trading at around $70.00 per barrel. The benchmark 10-year U.S. Treasury bond yield is falling and is currently at 3.77%.

U.S. economic data released today includes the weekly MBA mortgage application survey, new home sales, and the weekly U.S. Department of Energy's flow of energy stocks report.

Technical Analysis for Gold and Silver

Technically, December gold bulls have a strong overall technical advantage in the short term. The next upside price objective for the bulls is to close above solid resistance at $2,800.00. The next downside price objective for the bears is to push futures prices below solid technical support at $2,572.50. First resistance is seen at the overnight contract high of $2,694.960, followed by $2,700.00. First support is seen at $2,650.00, followed by this week's low of $2,638.60.

December silver futures bulls have a solid overall short-term technical advantage. On the daily bar chart, prices are in a six-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 the overnight high of $32.61, followed by $33.00. The next support is expected to be at $32.00, followed by $31.50.