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Price pressure on gold, silver as USDX gains

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(Kitco News) - Gold and silver futures prices are lower in early U.S. trading Thursday, once again being pushed down by a higher U.S. dollar index on this day. Both metals continue to act like raw commodities instead of safe-haven assets, as evidenced by losses in global stock markets today appearing to be another bearish element for the metals. December gold futures were last down $10.30 at $1,897.00 and December Comex silver was last down $0.455 at $23.94 an ounce.

Global stock markets were mostly down overnight. U.S. stock indexes are set to open the New York day session solidly lower. The worrisome spread of the Covid-19 virus in major industrialized countries and elsewhere, with Europe getting hit extra hard, has traders and investors in more risk averse modes late this week. France declared a state of emergency on Wednesday, regarding the spreading virus.

Reports Wednesday the U.S. Congress is nowhere close to a second, new major stimulus package for Americans has also dampened trader and investor sentiment. The marketplace is also getting a bit more jittery ahead of the U.S. elections in less than three weeks.

Reports this week say China is looking to punish foreign nations and companies by restricting their access to rare earth minerals. The National People's Congress is expected to review draft legislation on the matter ahead of its potential decree and implementation next year. The law would be a serious threat to western manufacturers, even though China has been limiting the availability of key rare earth minerals for some time by using export quotas and selling mainly to companies with manufacturing bases in China.

The important outside markets early today see the U.S. dollar index higher. Nymex crude oil prices are lower and trading around $40.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.698% today.

The weekly U.S. jobless claims will be in focus during the U.S. trading session, with new claims seen at around 830,000 in the latest week.

Other U.S. economic data due for release Thursday includes the Empire State manufacturing survey, the Philadelphia Fed business survey, the weekly DOE liquid energy stocks report and import and export prices.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bulls have the overall near-term technical advantage amid recent choppy and sideways trading. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,939.40. 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 $1,917.50 and then at $1,925.00. First support is seen at this week’s low of $1,885.00 and then at $1,877.10. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

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 $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.965. First resistance is seen at the overnight high of $24.415 and then at Wednesday’s high of $24.725. Next support is seen at the overnight low of $23.71 and then at $23.50. Wyckoff's Market Rating: 6.5.

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.