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Gold Prices Firmer As U.S. Dollar Index Sinks

Kitco News

(Kitco News) - Gold prices are modestly higher in early U.S. trading Thursday. A sharply lower U.S. dollar index that dropped to a 2.5-month low this morning is only giving mild support to the precious metals markets. Risk-on trader and investor attitudes in the world marketplace continue to squelch buyers of the safe-haven metals. December gold futures were last up $2.20 an ounce at $1,210.50. December Comex silver was last up $0.05 at $14.33 an ounce.

World stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. It’s been a quieter week on the fundamental news front, with the ongoing U.S.-China trade war the main focus. However, traders and investors are fatigued with that news and the markets are reacting less and less to the latest salvos.

In overnight news, Turkey’s finance minister said his country will experience lower economic growth and higher inflation in the coming two years, with annual inflation reaching a whopping 20%. The Turkish lira is down 40% against the U.S. dollar this year.

Japan’s prime minister Abe on Thursday was re-elected as his party’s leader by a landslide.

The other key outside market today finds Nymex crude oil prices near steady and trading around $71.00 a barrel. Around present price levels rallies have been capped several times this year.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, leading economic indicators, and existing home sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears have the overall near-term technical advantage. However, recent sideways price action favors the bulls and suggests 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 last week’s high of $1,218.00 and then at $1,220.70. First support is seen at the overnight low of $1,205.10 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 last week’s high of $14.39 and then at $14.50. Next support is seen at this week’s low of $14.065 and then at last week’s low of $13.965. Wyckoff's Market Rating: 2.0.

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.