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Gold prices gain as investor risk appetite wanes

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(Kitco News) - Gold and silver prices are higher in early U.S. trading Thursday. Trader and investors risk aversion has upticked as the week progresses and that’s benefitting the safe-haven metals. The shorter-term futures traders that had sold the metals are also getting skittish and covering those short positions (buying them back). December gold futures were last up $5.90 an ounce at 1,469.10. December Comex silver prices were last up $0.072 at $16.985 an ounce.

Asian and European stock indexes were mixed but mostly lower overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.

Risk aversion has up-ticked as the trading week progresses. A U.S.-China trade partial agreement now appears farther off after both sides have made comments this week to support that notion. China is reportedly balking at specific amounts of U.S. agricultural products it would be required to purchase in a trade deal. Meantime, President Trump said the U.S. is not going to roll back all of its tariffs on Chinese imports, which is what China is apparently requesting.

There was more downbeat economic data coming out of China Thursday, to support President Trump’s assertions the trade war is hurting China way more than the U.S. China’s industrial output in October was up 4.7% year-on-year—down from a rise of 5.8% in September. Retail sales were up 7.2% in October, also missing on the downside trade forecasts. Other economic data released from China Thursday was a mixed bag.

In other overnight news, the Euro zone third-quarter gross domestic product rose 0.2% from the second quarter and was up 1.2%, year-on-year. Those numbers were very close to market expectations.

Global risk appetite is also dented this week by an escalation of civil unrest in Hong Kong, including police shooting at least one protestor.

The key “outside markets” today see the U.S. dollar index slightly higher. Nymex crude oil prices are higher and trading around $57.70 a barrel.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the producer price index, and the weekly DOE liquid energy stocks report. Several Federal Reserve officials are also slated to speak today.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bears still have the slight overall near-term technical advantage. Prices are still in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,400.00. First resistance is seen at $1,475.00 and then at $1,500.00. First support is seen at the overnight low of $1,461.70 and then at Wednesday’s low of $1,456.40. Wyckoff's Market Rating: 4.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bears also have the overall near-term technical advantage. Prices are in a two-month-old downtrend 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 $16.00. First resistance is seen at $17.10 and then at $17.25. Next support is seen at Wednesday’s low of $16.72 and then at this week’s low of $16.615. Wyckoff's Market Rating: 4.0.

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