(Kitco News) – Gold and silver prices are down and have fallen to daily lows in early U.S. trading Thursday. Risk aversion is not keen late this week, which is not working in favor the safe-haven metals. Traders are awaiting any fresh news on the geopolitical front. December gold futures were last down $6.00 an ounce at 1,506.80. December Comex silver prices were last down $0.17 at $17.745 an ounce.
Traders and investors are awaiting the latest word coming from the trade talks between the U.S. and China that are taking place in Washington, D.C. Many were surprised that China trade officials even showed up for the negotiations after the U.S. hit China with new sanctions earlier this week. And there is also talk of a limited deal that might be struck between the two nations. As has been the case for many months, the trade talks are very fluid and a tweet from President Trump could change the whole tenor of the situation.
Asian and European stock markets were mixed overnight. The U.S. stock indexes are pointed toward steady to slightly lower openings when the New York day session begins.
The U.S. data point of the day is the consumer price index report for September, which came out unchanged from August and up 1.7%, year-on-year. The figure was expected to come in up 0.1% on the month and up 1.8%, on the year.
Nymex crude oil prices are near steady and trading around $52.50 a barrel today. The other key “outside market” sees the U.S. dollar index down in early U.S. trading.
Other U.S. economic data due for release Thursday includes the weekly jobless claims report, real earnings and monthly chain store sales.
Technically, the gold bulls have the overall near-term technical advantage. Still, a four-week-old downtrend line is in place on the daily bar chart but is now on the verge of being negated with more price strength. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,543.30. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at the October high of $1,525.80 and then at $1,530.00. First support is seen at $1,500.00 and then at this week’s low of $1,492.10. Wyckoff’s Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage and they are challenging a four-week-old downtrend line on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.94. First resistance is seen at this week’s high of $18.00 and then at $18.25. Next support is seen at $17.50 and then at this week’s low of $17.305. Wyckoff’s Market Rating: 6.5.
By Jim Wyckoff
For Kitco News