Gold Price: Minor Correction After Positive Week
(Kitco News) - Gold prices are slightly lower in early U.S. trading Friday, on a minor correction after this week’s good gains that saw prices hit a three-week high on Thursday. The near-term chart posture for gold has improved this week, to suggest more sideways-to-higher price action next week. December Comex gold was last down $1.70 an ounce at $1,285.90. December Comex silver was up $0.085 at $17.06 an ounce.
World stock markets were mostly weaker overnight, on profit taking and on worries about U.S. tax reform legislation getting bogged down in Congress. U.S. stock indexes are pointed toward moderately lower openings when the New York day session begins. Lower closes in the U.S. stock indexes on Friday would produce some near-term technical damage, to suggest near-term market tops are in place. That would be a bullish development for the competing asset class, precious metals.
There were no significant news developments overnight to move the markets.
The key outside markets on Friday find U.S. dollar index near steady in early U.S. trading. The greenback bulls have faded a bit late this week.
Meantime, Nymex crude oil futures prices are also near steady and are trading just above $57.00 a barrel, after nearby futures hitting a two-year high on Wednesday. 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 Friday is light includes the University of Michigan consumer sentiment survey. Friday is the U.S. Veterans Day federal holiday.
Technically, December gold futures bulls have 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 Thursday’s low of 1,280.50 and then at $1,276.10. First resistance is seen at this week’s high of 1,289.50 and then at $1,300.00. Wyckoff’s Market Rating: 5.5
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 $19.91 and then at this week’s low of $16.795. Wyckoff's Market Rating: 5.0.