(Kitco News) – Gold and silver prices are firmer in early U.S. trading Friday. The buying back of previously sold futures positions (short covering) by the shorter-term futures traders is featured to end the trading week. Also, some traders are stepping up to buy the recent dip and do some perceived bargain hunting. December gold futures were last up $5.90 an ounce at 1,469.50. December Comex silver prices were last up $0.04 at $17.105 an ounce.
Asian and European stock markets were mixed overnight and the U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
Amid a quieter geopolitical front recently, trader and investor focus remains on the U.S.-China trade war and ongoing negotiations between the world’s two largest economies. Late this week the tenor is mixed, highlighted by Chinese Premiere Xi saying China will “fight back” on trade if the U.S. imposes more tariffs on China’s products. Yet, reports from China also say trade officials, including Xi, want to get a deal done, with Xi saying he does not want a trade war. Reports Thursday said Chinese trade officials invited U.S. trade officials to China for more talks in the near term. This pattern of optimism and then pessimism on trade-talks progress continues.
In other overnight news, the German October manufacturing purchasing managers index (PMI) came in at 43.8, which was a bit better than expected but still well below the 50.0 level, indicating contraction in the sector.
The key “outside markets” today see the U.S. dollar index slightly higher. Nymex crude oil prices are weaker and trading around $58.25 a barrel. Oil prices hit a two-month high on Thursday.
U.S. economic data due for release Friday includes the U.S. flash manufacturing and services purchasing managers indexes, the Federal Reserve Kansas City manufacturing survey, and the University of Michigan consumer sentiment survey.
Technically, the gold bears have the slight overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,500.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,400.00. First resistance is seen at this week’s high of $1,479.20 and then at $1,490.00. First support is seen at $1,465.10 and then at this week’s low of $1,456.60. Wyckoff’s Market Rating: 4.5.
December silver futures bears also have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.25 and then at $17.35. Next support is seen at $17.00 and then at this week’s low of $16.705. Wyckoff’s Market Rating: 4.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
