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Gold, silver prices weaker amid scant risk aversion

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(Kitco News) -  Gold and silver prices are modestly down in early U.S. trading Thursday. Buyers of the safe-haven metals remain very timid as there have been no major new developments on the geopolitical or macroeconomic fronts to propel the bulls. December gold futures were last down $3.10 an ounce at 1,471.10. December Comex silver prices were last down $0.025 at $17.09 an ounce.

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

Once again, the marketplace is focusing on the up-and-down U.S.-China trade talks, and now with a downbeat bias. Reports overnight say China trade officials have contacted U.S. trade officials regarding a meeting in China soon. The reports said the U.S. has yet to respond. This news follows comments from President Trump this week that dented optimism for a partial trade deal being signed anytime soon. Trump late Wednesday said China is not “stepping up” on a trade deal and that the U.S. could slap more tariffs on Chinese imports. A report Wednesday also said China is standing firm on wanting the U.S. to rollback all of its tariffs on Chinese products. Most traders and investors have become numb to the matter.

Hong Kong civil unrest remains high and the protestors got a psychological boost this week when the U.S. Congress proposed official U.S. backing of them. That has also angered mainland China. This situation is likely to get worse before it gets better.

In other overnight news, the Paris-based OECD think tank has forecast global economic growth in 2020 at 2.9% and at 3.0% in 2021. Those numbers are steady to slightly lower than the previous forecasts for the time periods. The OECD also forecast China’s economic growth in 2021 slowing to 5.5%.

The key “outside markets” today see the U.S. dollar index weaker. Nymex crude oil prices are firmer and trading around $57.25 a barrel.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, leading economic indicators and existing home sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bears have the slight overall near-term technical advantage. Prices are in a 2.5-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 this week’s high of $1,479.20 and then at $1,490.00. First support is seen at $1,465.10 and then at this week’s low of $1,456.60. 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 2.5-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 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 $17.185 and then at $17.25. Next support is seen at this week’s low of $16.705 and then at the November low of $16.615. Wyckoff's Market Rating: 4.0.

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