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Gold At 3-Week High As U.S. Dollar Fades

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(Kitco News) - A weaker U.S. dollar index is helping to push gold prices modestly higher in early U.S. trading Thursday. The yellow metal poked to another three-week high overnight. The near-term chart posture for gold has improved this week, which is also inviting technically oriented traders into the long side of the market. December Comex gold was last up $3.50 an ounce at $1,287.20. December Comex silver was down $0.048 at $17.09 an ounce.

World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins. The weaker equity markets today are a mildly supportive element for the competing asset class of precious metals. However, the world stock indexes are just seeing normal corrective, profit-taking pullbacks from recent gains that put the indexes at or near record or multi-year highs.

In overnight news, the Euro zone said it sees its annual GDP at up 2.2% in 2017 and at 2.1% in 2018. These numbers are a bit better than the previous GDP forecasts from the EU. The EU sees annual inflation for the bloc at 1.5% this year and at 1.4% in 2018. These numbers are slightly higher from the previous EU inflation forecasts.

U.S. President Trump is in China, as part of his big Asian trip. Reports said Trump and Chinese Premiere Xi are getting along very well, but there were no major breakthroughs on economic or North Korea matters.

Nymex crude oil futures prices are slightly higher and are trading near $57.00 a barrel Thursday morning, after nearby futures hitting a two-year high on Wednesday. Rallying oil prices recently are also benefitting the precious metals markets. However, it is still my bias that Nymex crude won’t be able to sustain prices at or above $60.00 a barrel.

U.S. economic data due for release Thursday is light and includes the weekly jobless claims report and monthly wholesale trade.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bulls have regained the slight overall near-term technical advantage. Price action this week has produced a bullish upside “breakout” from the recent trading range on the daily bar chart. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the October low of $1,262.80. First support is seen at the overnight low of 1,280.50 and then at $1,276.10. First resistance is seen at 1,292.90 and then at $1,300.00. Wyckoff’s Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver bulls and bears are on a level overall near-term technical playing field. The next upside price breakout objective is closing futures 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 the October low of $16.345. First resistance is seen at this week’s high of $17.27 and then at $17.50. Next support is seen at this week’s low of $16.795 and then at $16.60. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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