The action in the United States early on Wednesday showed that gold prices hardly budged. Silver prices experienced a slight decline. Precious metal traders are in a state of pause, waiting for some key U.S. economic data, including this afternoon's Federal Open Market Committee (FOMC) meeting minutes and the inflation reports on Thursday and Friday.

Asian and European stock markets fluctuated overnight. At the New York opening, U.S. stock indices started lower.

On Tuesday, China's National Development and Reform Commission's much-anticipated economic briefing did not impress the Chinese market nor provide any new stimulus measures. On Wednesday, China's Shanghai Composite Index fell by 6.6%, while the CSI 300 Index dropped over 7%. The Hang Seng Index in Hong Kong also fell by 1.7% following a 9% decline on Tuesday. David Morrison from Trade Nation stated in an email today, "The measures announced by [China] were few, which was surprising and generally disappointing. These measures fell far short of expectations and thus have the potential to undermine the initial positive reaction to the news of an imminent stimulus plan."

Today, the main external market sees the U.S. Dollar Index as somewhat stronger. Crude oil prices at the New York Mercantile Exchange are nearly stable, trading around $73.50 per barrel. The benchmark 10-year U.S. Treasury bond yield is currently at 4.016%.

Traders are awaiting the latest U.S. inflation data for this week, with the Consumer Price Index (CPI) to be released on Thursday and the Producer Price Index (PPI) on Friday. The CPI for September is expected to grow by 2.3% annually, compared to the 2.5% growth reported in August. The PPI on Friday is forecasted to rise by 0.1% month-over-month, compared to the 0.2% reported in August.

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U.S. economic data released on Wednesday includes the weekly MBA Mortgage Applications Survey, monthly Wholesale Trade, FOMC meeting minutes, and the U.S. Department of Energy's Weekly Petroleum Status Report.

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 near-term downside price objective for the bears is to push futures prices below solid technical support at $2,600.00. First resistance appears at this week's high of $2,679.20, followed by last Friday's high of $2,690.60. First support is at $2,650.00, followed by $2,646.20.

December silver futures bulls have an overall technical advantage in the short term. On the daily bar chart, prices remain in an uptrend for two months, but the bulls need to show new strength soon to maintain momentum. The next upside price objective for bullish silver 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 $29.00. First resistance is at $31.50, then at $32.00. The next support is expected to be at this week's low of $30.345, then at $30.00.