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Gold price a bit weaker but bulls have stabilized market

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(Kitco News) Gold futures prices are modestly lower in early U.S. trading Thursday and silver is solidly higher. Importantly, bulls appear to have stabilized both markets following Tuesday’s downside debacle. October gold futures were last down $6.60 an ounce at $1,933.90. September Comex silver prices were last up $0.541 at $26.52 an ounce. 

Global stock markets were mixed in overnight trading and the U.S. stock indexes are also pointed toward mixed openings when the New York day session begins. 

Focus Thursday is on the weekly U.S. jobless claims report, which is expected to show new claims at 1.1 million in the latest week. Traders and investors will scrutinize the jobs data to try to gauge the pace of the U.S. economic recovery, or lack thereof. A surprising number could move the markets.

Also somewhat downbeat for the marketplace today are reports the U.S. Democrats and Republicans in Congress are still far apart on any new stimulus package for Americans. And Boston Federal Reserve President Eric Rosengren warned Thursday that Americans not adhering to guidelines issued by health officials will prolong the U.S. economic downturn.

The important outside markets today see Nymex crude oil prices near steady and trading around $42.65 a barrel. The U.S. dollar index is lower. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 0.66%.

Other U.S. economic data due for release Thursday includes import and export prices.

Technically, the gold bulls still have the overall near-term technical advantage, but now need to defend what is the latest “reaction low” in the still-existing price uptrend on the daily chart—this week’s low of $1,865.00. A drop below that level would negate the near-term price uptrend to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,865.00. First resistance is seen at today’s high of $1,943.80 and then at Wednesday’s high of $1,952.30. First support is seen at the overnight low of $1,914.90 and then at $1,900.00. Wyckoff's Market Rating: 7.0

Live 24 hours gold chart [Kitco Inc.]

September silver futures bulls still have the overall near-term technical advantage, but now need to defend what is the latest “reaction low” in the still-existing price uptrend on the daily chart—this week’s low of $23.58. A drop below that level would negate the price uptrend to suggest a near-term market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.58. First resistance is seen at today’s high of $26.865 and then at $27.00. Next support is seen at $26.00 and then at the overnight low of $25.355. Wyckoff's Market Rating: 7.0. 

Live 24 hours silver chart [ Kitco Inc. ]

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