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Gold, Silver Prices Weaker Amid Bearish Outside Markets

Kitco News

(Kitco News- Gold and silver prices are moderately lower in early U.S. trading Friday, pressured by bearish outside market forces that include a firmer U.S. dollar index and weaker oil prices. February gold futures were last down $3.80 an ounce at $1,226.50. March Comex silver was down $0.102 at $14.30 an ounce.

Nymex crude oil futures prices are lower and trading just below $51.00 a barrel. Oil prices have lost around 30% in value the past two months, which is making it very hard for most commodity markets to sustain a price uptrend. A key OPEC oil cartel meeting is scheduled for next week in Vienna, Austria.

The other outside market today finds the U.S. dollar index trading firmer and near the recent highs.

European stock markets were mostly lower overnight. Asian stock indexes were mixed. U.S. stock indexes are pointed toward lower openings when the New York day session begins. While the U.S. stock index bulls have had a good week, the bears still possess the overall near-term technical advantage.

All marketplace eyes are now on the Group of 20 meetings that begin Friday in Buenos Aires, Argentina and will feature a face-to-face meeting between U.S. President Trump and Chinese President Xi Jinping on Saturday. The world’s two largest economies are locked in a heated trade war. Come Monday morning, many markets could be very active at their openings, given the keen uncertainty on the outcome of the U.S.-China meeting on trade.

In overnight news, the Euro zone jobless rate was unchanged in October, at 8.1%. Meantime, consumer prices in the bloc rose 2.0% in November, on an annual basis, versus up 2.2% in October. It appears that just recently inflation worries worldwide have ebbed a bit, what with the big drop in crude oil prices.

U.S. economic data due for release Friday is light and includes the ISM Chicago business survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the November high of $1,252.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the November low of $1,202.40. First resistance is seen at last week’s high of $1,236.70 and then at $1,245.00. First support is seen at $1,220.00 and then at this week’s low of $1,216.80. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

March 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 the October high of $15.055 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $13.985. First resistance is seen at this week’s high of $14.545 and then at last week’s high of $14.66. Next support is seen at this week’s low of $14.185 and then at $14.00. Wyckoff's Market Rating: 2.0.

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