Price pressure on gold, silver as USDX, bond yields rebound
Gold and silver prices are moderately down in early U.S. trading Friday, once again falling victim to a higher U.S. dollar index and rising U.S. Treasury yields to end the trading week. December gold was last down $10.90 at $1,654.60 and December silver was down $0.199 at $19.29.
The geopolitical front is far from calm at present. However, there have been no major, new developments to shake up the marketplace. Thus, precious metals traders have recently been focusing mainly on the key outside markets for daily price direction. Next week’s Federal Reserve FOMC meeting will give traders and investors some fresh, major fundamental news to digest.
Global stock markets were mixed overnight. U.S. stock indexes are headed for weaker openings when the New York day session begins. The stock index bulls have been rattled late this week amid downbeat earnings reports from the technology sector, including Meta, whose stock price lost around one-fourth of its value Thursday.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are weaker and trading around $88.25 a barrel. The 10-year U.S. Treasury note is yielding 4.004%.
U.S. economic data due for release Friday includes personal income and outlays, the employment cost index, pending home sales and the University of Michigan consumer sentiment survey.
Technically, the gold futures bears have the firm overall near-term technical advantage. However, more upside price action in the near term would form a bullish double-bottom reversal pattern that would suggest a major market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at the overnight high of $1,670.90 and then at this week’s high of $1,679.40. First support is seen at the overnight low of $1,649.50 and then at this week’s low of $1,641.20. Wyckoff's Market Rating: 2.5
The silver bears have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $21.31. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at the overnight high of $19.62 and then at this week’s high of $19.765. Next support is seen at today’s low of $19.105 and then at $19.00. Wyckoff's Market Rating: 3.0.
By Jim Wyckoff
For Kitco News
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