Gold Sees Some Safe-Haven Demand Heading Into Long U.S. Holiday Weekend
(Kitco News) - Gold prices are moderately higher in early U.S. trading Friday, on some safe-haven demand ahead of a three-day U.S. holiday weekend that has many traders and investors a bit uneasy. World trade tensions and wobbly secondary currency markets are on the minds of traders and investors. December gold futures were last up $4.80 an ounce at $1,209.80. December Comex silver was last up $0.041 at $14.64 an ounce.
World stock markets were mixed to lower overnight, on risk aversion amid renewed trade tensions among the U.S. and other major world economies. U.S. stock indexes are also pointed toward weaker openings, on some more mild profit taking after hitting record highs on Wednesday.
Today is the deadline President Trump has set for Canada to come to terms with the U.S. on a trade agreement. Also, Trump said in a Bloomberg interview that the European Union “is almost as bad as China” regarding unfair trade practices with the U.S. The U.S. says it will impose another $200 billion in tariffs on China’s imports as early as next week.
Today is the last trading day of the week and of the month, which makes it an extra important trading day from a technical chart perspective. Also, the calendar turns to September on Saturday, and after the long U.S. holiday weekend traders and investors will come back to work in a more serious mood, after a summertime of fun and family vacations. The months of September and October many times find the marketplace focusing on matters of worry. The next couple of months could well find the marketplace closely examining the secondary currency markets and the beating they have taken against the U.S. dollar this year.
In other overnight news, the Euro zone’s annual consumer inflation rate was reported at 2.0% in August, which is down slightly from July’s rate of 2.1%.
The key outside markets today find the U.S. dollar index near steady. Meantime, Nymex crude oil prices are weaker on some profit taking after hitting a six-week high on Thursday.
U.S. economic data due for release Friday includes the ISM Chicago business survey and the University of Michigan consumer sentiment survey.
Technically, gold bears still have the overall near-term technical advantage but a price downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at the overnight high of $1,214.90 and then at this week’s high of $1,220.70. First support is seen at this week’s low of $1,202.10 and then at $1,200.00. Wyckoff's Market Rating: 3.0.
December silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at $14.825 and then at $15.00. Next support is seen at this week’s low of $14.545 and then at the August low of $14.405. Wyckoff's Market Rating: 2.5.