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Gold prices slightly up after uninspiring U.S. data

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(Kitco News) - Gold prices are slightly higher in early U.S. trading Thursday. A batch of U.S. economic data just released was a mixed bag but leaned just a bit on the weak side, which gave the gold market a slight lift. December gold futures were last up $1.00 an ounce at 1,495.00. December Comex silver prices were last up $0.148 at $17.585 an ounce.

Asian and European stock markets were mostly up overnight. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. Risk appetite among traders and investors is a bit more robust Thursday on reports the U.K. and the European Union have reached a deal for the U.K. to leave the EU (Brexit) under good conditions. The deal needs to be ratified by both governments’ parliaments, however.

The Brexit news is making for a strong rally in the British pound, which has hit a four-month high. The Brexit news also put some overnight pressure on safe-haven assets like gold.

Nymex crude oil prices are slightly lower and trading around $53.00 a barrel today. The other key “outside market” sees the U.S. dollar index lower and hitting a six-week low overnight. The greenback is fading, due in part to some downbeat U.S. retail sales data released Wednesday that ups the odds of a Federal Reserve interest rate cut coming yet this year.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, new residential construction, industrial production and capacity utilization and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the overall near-term technical advantage bit are fading. A five-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 $1,525.00. 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 the overnight high of $1,496.80 and then at $1,500.00. First support is seen at the overnight low of $1,487.00 and then at last week’s low of $1,478.00. Wyckoff's Market Rating: 6.0.

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the slight overall near-term technical advantage but have faded recently and need to negate a five-week-old downtrend line 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 $18.00 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 this week’s high of $17.765 and then at $18.00. Next support is seen at the overnight low of $17.33 and then at this week’s low of $17.18. Wyckoff's Market Rating: 5.5.
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