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Price gains for gold, silver as greenback fades again

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(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Thursday, again seeing some buying support from a weaker U.S. dollar index on this day. Still, the gold and silver market bulls need a fresh fundamental news spark to restart their near-term price uptrends that have stalled out. December gold futures were last up $7.80 at $1,903.20 and December Comex silver was last up $0.256 at $23.75 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session higher. Many Asian stock markets were closed for a holiday, while the Tokyo Stock Exchange had to halt stock trading due to technical problems. The stock and financial markets are half-way through what can be turbulent months of September and October. A glance across the markets spectrum shows no serious shocks or major volatility during September, although some markets did experience moderate rises in volatility—but also which can be considered not unusual. The U.S. stock indexes did get a bit wobbly during September but prices now appear to have stabilized.

Slight hopes for a new U.S. financial stimulus package for American citizens and businesses faded Wednesday after the Democrats and Republicans had a flurry of discussions earlier this week. Many doubt any plan will be agreed upon before the U.S. elections in early November.

In overnight news, the Euro zone September manufacturing purchasing managers index (PMI) was reported at 53.7 versus the August reading of 51.7. The September PMI was right in line with market expectations. A reading above 50.0 suggests growth in the sector.

Traders and investors are awaiting the U.S. economic data point of the week, which is Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%.

The important outside markets early today see the U.S. dollar index weaker. Nymex crude oil prices are weaker and trading around $40.00 a barrel. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.68% today.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, personal income and outlays, the ISM report on business manufacturing, the U.S. manufacturing PMI, the global manufacturing PMI, construction spending, and domestic auto industry sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bulls have the overall near-term technical advantage but prices are still trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,925.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,910.00 and then at $1,920.00. First support is seen at the overnight low of $1,890.00 and then at Tuesday’s low of $1,880.80. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage. However, prices are still trending lower on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at this week’s high of $24.545 and then at $25.00. Next support is seen at Wednesday’s low of $23.235 and then at $23.00. Wyckoff's Market Rating: 6.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.