Gold and Silver Prices Weaken as Dollar Index Strengthens
Gold and silver prices are a bit weaker in early U.S. trading Friday. The precious metals are seeing mild selling pressure as the U.S. dollar index is firmer and U.S. Treasury yields have up-ticked today. Don’t be surprised to see gold and silver bulls buy these price dips heading into a still-uncertain weekend on the Middle East front.
December gold was last down $5.30 at $1,992.10. December silver was last down $0.053 at $22.855. Asian and European stocks were mixed overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins. The marketplace is not reacting strongly to news overnight U.S. warplanes jets struck Iranian-backed militants and their installations in Syria. The U.S. said the strikes were in response to those militants firing missiles and flying drones to attack U.S. interests in the Gulf region.
A Wall Street Journal headline today reads: “(U.S.) inflation trends likely to keep Fed rate-hike pause on track.” The marketplace consensus is that the Federal Reserve will hold its monetary policy steady at next week’s FOMC meeting.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are higher and trading around $84.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.858%. U.S. economic data due for release Friday includes personal income and outlays, including the PCE inflation components. The University of Michigan consumer sentiment survey is also due out.
Technically, the gold futures bulls have the near-term technical advantage. Prices are trending higher on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $2,050.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at this week’s high of $2,003.70 and then at the October high of $2,009.20. First support is seen at Thursday’s low of $1,981.60 and then at this week’s low of $1,964.60.
The silver bulls have the overall near-term technical advantage. Prices are still trending higher on the daily bar chart, but the bulls need to show fresh power soon to keep it alive. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.00 and then at $23.35. Next support is seen at this week’s low of $22.565 and then at $22.25.
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