Gold, silver traders don’t want to go home short this weekend
(Kitco News) - Gold prices are modestly lower in early U.S. trading Friday, but silver prices are posting decent gains. Look for selling interest to be limited in both metals heading into a long U.S. holiday weekend. December gold futures were last down $1.60 an ounce at 1,535.30. December Comex silver prices were last up $0.162 at $18.485 an ounce.
Asian and European stock markets mostly higher overnight. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins, following strong gains posted Thursday. Risk appetite has increased late this week on notions the U.S.-China trade war may have ratcheted down a bit after reports surfaced out of China Thursday that the nation says it is not interested in escalating the trade war with the U.S. and that both countries are still in communication on the matter. Still, new U.S. tariffs on China kick in on Sunday.
Reports overnight said Hong Kong police have arrested at least three prominent activists and blocked plans for a protest march on Saturday as part of a crackdown on recent civil unrest. Sunday is the fifth anniversary of China’s “831 Decision” on Hong Kong’s democratic reforms, and protesters had planned to launch another mass demonstration before they were banned by police. This situation could escalate over the weekend and again be a front-burner issue for the marketplace next week.
In other overnight news, the Euro zone consumer price index for August came in at up 1.0%, year-on-year, which was in line with market expectations but still underscores the very low and even problematic inflation currently in place for most of the world’s major economies.
The key “outside markets” today see Nymex crude oil prices down and trading around $56.00 a barrel. The U.S. dollar index is slightly firmer.
Today is the last trading day of the week and of the month. That makes it an extra important trading day from a charts perspective. Weekly or monthly high or low closes are significant technical signals.
U.S. economic data due for release Friday includes personal income and outlays, the ISM Chicago business survey, and the University of Michigan consumer sentiment survey.
Technically, the gold bulls have the solid overall near-term technical advantage. A three-month-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 the overnight high of $1,541.90 and then at 1,546.10. First support is seen at this week’s low of $1,528.60 and then at $1,523.00. Wyckoff's Market Rating: 8.0.December silver futures bulls have the strong overall near-term technical advantage. Prices are in an accelerating three-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at this week’s low of $17.64. First resistance is seen at the overnight high of $18.675 and then at this week’s high of $18.76. Next support is seen at the overnight low of $18.165 and then at $18.00. Wyckoff's Market Rating: 8.5.