Make Kitco Your Homepage

Gold prices fade as risk appetite more robust

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) -  Gold and silver prices are down again in early U.S. trading Friday. Risk appetite is on the upswing late this week, which is pressuring the safe-haven metals. December gold futures were last down $11.40 an ounce at 1,489.50. December Comex silver prices were last down $0.102 at $17.50 an ounce.

Asian and European stock markets were mostly higher overnight. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Risk appetite is upbeat to end the trading week. The U.S.-China trade talks appeared to have gone well this week in Washington, D.C. President Trump will meet today with China’s Vice Premiere Liu He, signaling at least a partial trade deal is close. News services are also reporting a trade deal between the world’s two largest economies is close at hand.

Also a positive for the marketplace and especially the Europeans are reports the U.K. and European Union are making some progress to avoid a “hard” Brexit that would disrupt European financial markets.

Traders worldwide are taking note of reports Iran says one of its oil tankers was attacked by missiles in the Red Sea, which is close to Saudi Arabia. That helped to push oil prices higher.

Nymex crude oil prices are higher and trading around $54.50 a barrel today. The other key “outside market” sees the U.S. dollar index modestly down in early U.S. trading.

U.S. economic data due for release Friday includes import and export prices, and the University of Michigan consumer sentiment survey. Several Federal Reserve officials are also scheduled to speak today.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage. Still, a four-week-old downtrend line is in place on the daily bar chart and needs to be negated to give the bulls fresh technical strength. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,543.30. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,500.00 and then at the overnight high of $1,508.00. First support is seen at the overnight low of $1,483.80 and then at $1,475.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage but need to negate a four-week-old downtrend line still in place on the daily bar chart to gain fresh power. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.94. First resistance is seen at the overnight high of $17.785 and then at this week’s high of $18.00. Next support is seen at this week’s low of $17.305 and then at $17.00. Wyckoff's Market Rating: 6.0.

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.