Gold, silver see price gains amid rising equity markets
(Kitco News) - Gold and silver futures prices are higher in early U.S. trading Thursday. Once again, the two metals are choosing to behave like a commodity market and are following the overnight gains in global equities markets, led by the U.S. It appears gold and silver traders reckon rallying stock markets suggest better overall demand for commodities. December gold futures were last up $13.40 at $1,904.10 and December Comex silver was last up $0.384 at $24.27 an ounce.
Global stock markets were mixed but mostly firmer overnight. U.S. stock indexes are set to open the New York day session higher, on follow-through strength from Wednesday’s solid gains.
Traders and investors are still monitoring U.S. congressional discussions on a stimulus package for American citizens and businesses, although a breakthrough deal does not appear to be close at hand. Still, the U.S. stock indexes rallied Wednesday and overnight on notions that some kind of a deal will be reached soon. Gold and silver bulls may also be thinking that more U.S. stimulus money sent out by the government means higher odds for problematic inflation down the road.
The weekly jobless claims report is the U.S. data point of the day Thursday, with new claims seen at 825,000, down a bit from the 837,000 reported last week.
The important outside markets early today see the U.S. dollar index near steady. Nymex crude oil prices are higher and trading around $40.50 a barrel. The 10-year U.S. Treasury note yield is presently trading around 0.77%.
U.S. economic data due for release Thursday includes the weekly jobless claims report and the monthly chain store sales index. Several Federal Reserve officials are also slated to give speeches today.
Technically, the December gold futures bulls have the overall near-term technical advantage but prices are still trending down on the daily bar chart. Trend-line resistance that I have shown you on the daily chart recently held fast on Tuesday. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at this week’s high of $1,927.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at $1,910.00 and then at $1,927.00. First support is seen at this week’s low of $1,877.10 and then at $1,851.00. Wyckoff's Market Rating: 6.0
December silver futures bulls have the overall near-term technical advantage. 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 $24.675 and then at $25.00. Next support is seen at the overnight low of $23.815 and then at this week’s low of $22.965. Wyckoff's Market Rating: 6.0.