Gold Prices Fall To Fresh 4-Mo. Low Amid Scant Risk Aversion
(Kitco News) - Gold and silver prices are lower in early U.S. trading Thursday, as a lack of fresh, bullish fundamental news and very little risk aversion in the marketplace emboldens the sellers. Gold prices dropped to a four-month low overnight, while silver hit a nearly five-month low. A rebound in the U.S. dollar index this week is also working against the precious metals market bulls. February Comex gold was last down $8.10 an ounce at $1,258.00. March Comex silver was last down $0.095 at $15.86 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. World stock indexes that are at or near record or multi-year highs show there is keen risk appetite in the marketplace at present, which is a big negative for the safe-haven gold and silver markets.
Traders and investors are monitoring U.S. government lawmakers’ negotiations with President Trump over a stop-gap measure to keep the federal government in operation. It’s expected the stop-gap funding bill will be implemented later this week.
In overnight news, the Euro zone third-quarter GDP came in unrevised at up 0.6% from the second quarter and up 2.6%, year-on-year. Those numbers were very close to market expectations.
The other key “outside market” Thursday morning sees Nymex crude oil futures prices firmer. However, the price uptrend in crude oil has stalled, which begins to suggest a near-term market top is in place.
The U.S. economic report highlight of the trading week will be Friday morning’s November U.S. employment report from the Labor Department. The key non-farm payrolls number is forecast to be up 195,000. Wednesday’s U.S. ADP national employment report for November showed a rise of 190,000 jobs.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, and the consumer credit report.
Technically, February gold futures bears have the overall near-term technical advantage and have gained more power late this week. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,280.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,250.00. First support is seen at today’s low of $1,257.70 and then at $1,250.00. First resistance is seen at the overnight high of 1,266.80 and then at Wednesday’s high of $1,271.80. Wyckoff’s Market Rating: 3.5.
March silver bears have the solid overall near-term technical advantage. The next upside price breakout objective is closing futures prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the July low of $15.225. First resistance is seen at $16.00 and then at Wednesday’s high of $16.17. Next support is seen at the overnight low of $15.805 and then at $15.75. Wyckoff's Market Rating: 2.5.