Gold Sees Solid Rebound As U.S. Dollar Backs Off
(Kitco News) - Gold prices are posting good gains in early U.S. trading Thursday. Traders stepped in to buy the dip in gold prices on some perceived bargain hunting and by some short covering from the futures traders. Also, precious metals are seeing buying interest as the U.S. dollar index is posting sharp losses today, on a corrective pullback from recent gains that pushed the index to a 16-month high Wednesday. December gold futures were last up $14.90 an ounce at $1,229.90. December Comex silver was last up $0.188 at $14.47 an ounce.
Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins, on an extension of a strong rebound from Monday’s sell-off that drove the indexes to six-month lows. Stock market traders and investors are glad to have the historically turbulent month of October out of the way and are now hoping for a seasonal Santa Claus rally. However, those thinking the world stock markets have seen the “all clear” siren as the calendar turns to November are likely going to be disappointed.
Focus in the U.S. is turning to next week’s mid-term elections, which many believe will be a referendum on the performance of President Trump.
The other key outside market today sees December Nymex crude oil prices weaker, hitting a nine-week low overnight and trading just below $65.00 a barrel. Recent technical damage on the charts suggests more downside for crude oil in the near term.
The key U.S. economic data point of the week, if not the month, will be Friday’s November employment report from the Labor Department. The key non-farm payrolls number is forecast to come in at up 188,000. However, Wednesday’s ADP national employment report reading of up 227,000 suggests Friday’s jobs report could be stronger than forecast.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, preliminary productivity and costs, the U.S. manufacturing purchasing managers index, construction spending and the ISM manufacturing report on business.
Technically, gold bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,246.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at the $1,232.50 and then at this week’s high of $1,237.80. First support is seen at $1,220.00 and then at this week’s low of $1,213.40. Wyckoff's Market Rating: 5.0
December silver futures bears have the firm 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 the September low of $13.965. First resistance is seen at $14.53 and then at this week’s high of $14.78. Next support is seen at this week’s low of $14.24 and then at $14.00. Wyckoff's Market Rating: 2.5.