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Gold Prices Weaker Amid Upbeat Investor Attitudes

Kitco News

(Kitco News) - Gold prices are modestly down in early U.S. trading Friday. Risk-on trader and investor attitudes in the world marketplace continue to prompt selling of the safe-haven metals. December gold futures were last down $2.70 an ounce at $1,208.60. December Comex silver was last up $0.09 at $14.395 an ounce.

World stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The S&P 500 and Dow stock indexes are at record highs, to attest to scant risk aversion in the world marketplace at present.

Goldman Sachs is predicting the U.S.-China trade war will be extended and will eventually see the U.S. putting tariffs on all Chinese imports into the U.S. Earlier this week, Alibaba founder Jack Ma said the U.S.-China trade war could last many years.

A feature in the marketplace this week has been falling U.S. Treasury prices (rising yields). The U.S. 10-year T-Note is presently yielding around 3.07%.

Traders and investors are looking ahead to next week, when the Federal Reserve’s Open Market Committee (FOMC) meets to discuss U.S. monetary policy. Many believe the Fed will make a slight interest rate increase at the meeting.

The key outside markets today find the U.S. dollar index up on a corrective rebound from this week’s selling pressure that drove prices to a 2.5-month low on Thursday. The greenback bears have downside technical momentum to suggest a market top is in place for the USDX. Meantime, Nymex crude oil prices are firmer and trading just below $71.00 a barrel. Around present price levels rallies have been capped several times this year.

U.S. economic data due for release Friday includes the flash services purchasing managers index (PMI) and the flash manufacturing PMI.

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 the overnight high of $1,215.80 and then at this week’s high of $1,218.00. First support is seen at Thursday’s 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 the overnight high of $14.465 and then at $14.50. Next support is seen at $14.21 and then at this week’s low of $14.065. 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.