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Gold prices slightly up as world's central banks leaning easy

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(Kitco News) - Gold prices are modestly up in early U.S. trading Friday. Notions of more monetary policy accommodation coming from the major central banks of the world in the near term are helping to lift gold prices. December gold futures were last up $3.20 an ounce at 1,510.20. December Comex silver prices were last down $0.047 at $18.13 an ounce.

The just-released U.S. retail sales report for August came out at up 0.4%, which was above the market’s expectation for a 0.2% rise. July retail sales were also revised up to a 0.8% rise. Gold prices saw some mild selling pressure come into the market just after the report was released, as the data falls into the camp of the U.S. monetary policy hawks, who do not want to see lower interest rates.

Asian and European stock markets were mostly up overnight. Markets in China, South Korea and Taiwan were closed for a holiday Friday. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Trader and investor risk appetite remains upbeat late this week, due in part to reports Thursday President Trump may be interested in an interim trade deal with China. Both the U.S. and China this week have sounded more conciliatory in their ongoing trade war. That’s a negative for the safe-haven metals markets.

The markets are still digesting Thursday’s monetary policy meeting of the European Central Bank saw the bank significantly ease its monetary policy. The ECB lowered interest rates by 0.1%, to minus 0.5%, and also announced a new “quantitative easing” bond-buying program, which is the largest in over three years. The Federal Reserve’s FOMC meets next week and is expected to cut U.S. interest rates by 0.25%. Reports today said Japan may be looking to further stimulate its moribund economy.

The key “outside markets” today see Nymex crude oil prices firmer and trading around $55.25 a barrel. The U.S. dollar index is lower in early U.S. trading today.

U.S. economic data due for release Friday includes retail sales, import and export prices, manufacturing and trade inventories, and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the firm overall near-term technical advantage and are keeping alive a three-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,566.20. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at this week’s low of $1,492.10. First resistance is seen at $1,535.00 and then at 1,540.00. First support is seen at $1,510.00 and then at $1,500.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the firm overall near-term technical advantage. Prices are in a 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 $17.50. First resistance is seen at this week’s high of $18.555 and then at $18.76. Next support is seen at $18.00 and then at this week’s low of $17.855. Wyckoff's Market Rating: 7.0.

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