Gold, silver see price gains as stock market faces "quad-witching"
(Kitco News) - Safe-haven gold and silver prices are seeing some buying interest in the early going Friday. U.S. stock indexes are set for mixed openings when the New York day session begins. U.S. stock traders may be a bit more nervous as Friday is the “quadruple witching” day, whereby stock index futures, options on futures and options on stocks expire. Such days can produce higher volatility in the stock indexes. October gold futures were last up $11.10 at $1,952.40 and December Comex silver was last up $0.18 at $27.28 an ounce.
So far the marketplace is not seeing a significant reaction to news just out that President Trump is blocking U.S. citizens from downloading the Tiktok and WeChat programs starting Sunday. The move is another ratcheting up of U.S.-China trade and political tensions. Don’t be surprised if some markets see some reaction to this news as the trading sessions progress Friday. The U.S. move could inject more uncertainty into the market place and that would be bullish for the safe-haven metals.
Global stock markets were near flat to firmer overnight. The important outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are slightly up and trading around $41.00. Crude oil bulls have had a good week, which has also encouraged bulls in other raw commodity markets, given that crude is arguably the sector leader. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.68% today.
U.S. economic data due for release Friday includes leading economic indicators, the international transactions and current account report, and the University of Michigan consumer sentiment survey.
Technically, the gold bulls have the firm overall near-term technical advantage and have gained momentum early this week. Prices are in an overall near-term uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at Thursday’s high of $1,960.50 and then at this week’s high of $1,975.40. First support is seen at the overnight low of $1,943.30 and then at this week’s low of $1,930.20. Wyckoff's Market Rating: 7.0
December silver futures bulls have the firm overall near-term technical advantage. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $30.19 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.80. First resistance is seen at $27.50 and then at this week’s high of $27.865. Next support is seen at $27.00 and then at this week’s low of $26.405. Wyckoff's Market Rating: 7.0.