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Gold Prices Up As Bulls Stabilize Market This Week

Kitco News

(Kitco News) - Gold prices are modestly up in early U.S. trading Friday, as the metal has steadied this week, which is a victory for the bulls as it suggests a near-term market bottom is in place. December gold futures were last up $2.30 an ounce at $1,210.50. December Comex silver was last up $0.016 at $14.26 an ounce.

The major U.S. economic report of the day Friday is the just-released retail sales for August, which came in at up 0.1% from July. Sales were forecast at up 0.4% from July. The markets saw little reaction from the miss to the downside on the report.

World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. U.S. stock indexes are not far below their recent record highs. The marketplace continues to see trader and investor attitudes generally upbeat.

Reports Thursday said the U.S. has made an overture to China to restart trade talks later this month. However, a tweet from President Trump on Thursday was not deemed upbeat on an imminent U.S.-China trade agreement.

In overnight news, the Turkish lira has rallied against the U.S. dollar Friday after Turkey’s central bank raised interest rates by 6.25% on Thursday.

The key outside markets today find the U.S. dollar index slightly lower. Meantime, Nymex crude oil prices are slightly up and trading just below $69.00 a barrel.

U.S. economic data due for release Friday includes import and export prices, retail sales, industrial production and capacity utilization, manufacturing and trade inventories and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears still have the overall near-term technical advantage. However, recent sideways price action favors the bulls and begins 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 $1,220.70. 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 this week’s high of $1,218.00 and then at $1,220.70. First support is seen at Thursday’s low of $1,205.00 and then at $1,200.00. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $13.50. First resistance is seen at $14.405 and then at $14.59. Next support is seen at this week’s low of $13.965 and then at $13.75. Wyckoff's Market Rating: 1.5.

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.