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Gold Prices Weaker As Risk Appetite Upticks

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(Kitco News) - Gold prices are moderately lower in early U.S. trading Friday. Safe-haven demand has waned a bit as the U.S. and world stock markets are rallying to end the trading week. Still, from a technical and trader perspective, today’s price action in gold and silver is just normal backing and filling on the charts, which is what a bull market needs routinely to keep a price uptrend alive and healthy. December gold futures were last down $9.90 an ounce at 1,521.50. September Comex silver prices were last down $0.064 at $17.145 an ounce.

U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. The U.S. stock market got a boost in afternoon trading Thursday when reports hit the wires that European Central Bank rate-setting official Olli Rehn said the ECB will be rolling out new economic stimulus measures in September. The U.S. fed funds futures market now shows a 100% chance the Federal Reserve will lower its key interest rate in September. Asian and European stock markets also saw gains Friday due in part to the ECB news.

On the U.S.-China trade war front, President Trump late Thursday said he will be talking to his counterpart, President Xi, “soon.” Trump also made comments that could be construed as both negative and positive regarding progress on resolving the dispute.

The key “outside markets” today see Nymex crude oil prices higher and trading just below $55.50 a barrel. The U.S. dollar index is modestly higher.

U.S. economic data due for release Friday includes new residential construction and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the strong overall near-term technical advantage. A 10-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,600.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,500.00. First resistance is seen at $1,530.00 and then at the overnight high of $1,538.60. First support is seen at the overnight low of $1,515.90 and then at $1,510.00. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.685. First resistance is seen at Thursday’s high of $17.37 and then at this week’s high of $17.49. Next support is seen at $17.00 and then at Wednesday’s low of $16.855. Wyckoff's Market Rating: 8.0.

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.