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Gold prices down on busy U.S. data day

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(Kitco News) - Gold and silver prices are moderately lower in early U.S. trading Friday. Trader and investors risk appetite has up-ticked just a bit late this week and that’s a negative for the safe-haven metals. December gold futures were last down $5.50 an ounce at 1,467.70. December Comex silver prices were last down $0.143 at $16.885 an ounce.

It’s a very busy day for U.S. economic reports Friday. Just out was the retail sales report for October which came in at up 0.3% from September, which was slightly above market expectations. Meantime, the Empire State manufacturing index was downbeat, coming in at 2.9 for November versus 4.0 for October. Markets moved very little on the reports.

Other for U.S. economic data released Friday includes import and export prices, industrial production and capacity utilization, and manufacturing and trade inventories.

Asian and European stock indexes were mostly higher overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Trader and investor risk appetite is a bit more robust to end the trading week. It’s been another up-and-down week regarding progress, or lack thereof, in U.S.-China trade negotiations. A Barron’s headline Friday warned that investors should be less worried about U.S.-China trade talks and more concerned about recent data pointing to a significant slowdown in China’s economic growth.

Hong Kong reported its gross domestic product down 2.9% in the third quarter, from the same period last year. The city expects its GDP to decline by 1.3% in 2019—the first annual decline in 10 years. Civil unrest in the city much of this year has hurt Hong Kong’s economic growth, as well as rattled Asian stock markets.

In other overnight news Friday, the Eurozone October consumer price index rose 0.1% from September and was up 0.7%, year-on-year.

The key “outside markets” today see the U.S. dollar index slightly lower. Nymex crude oil prices are weaker and trading around $56.50 a barrel.

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 Thursday’s 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 this week’s high of $17.08 and then at $17.25. Next support is seen at $16.72 and then at this week’s low of $16.615. Wyckoff's Market Rating: 4.0.

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