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Gold, silver see price gains amid risk aversion, lower USDX

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(Kitco News) - Gold and silver futures prices are firmer in early U.S. trading Friday. Support is coming from a weaker U.S. dollar index on this day and some risk aversion heading into the weekend. December gold futureswere last up $5.50 at $1,914.40 and December Comex silver was last up $0.311 at $24.535 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session a bit firmer. Traders and investors are more risk averse late this week, as Covid-19 cases are on the rise in many major world economies, including the U.S., and notions are growing that a big “second wave” of infections could again cripple economies, even if they don’t lock down to the degree seen this spring.

There are important U.S. economic reports out Friday, including retail sales and industrial production data. Retail sales in September are seen up 0.7% from August. Industrial production is seen up 0.5% in the same period.

The important outside markets early today see the U.S. dollar index weaker. Nymex crude oil prices are modestly lower and trading around $40.50 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.724% today.

U.S. economic data due for release Friday includes retail sales, industrial production and capacity utilization, manufacturing and trade inventories, the University of Michigan consumer sentiment survey, and Treasury international capital data.

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 $1,925.00 and then at $1,930.60. First support is seen at $1,900.00 and then at this week’s low of $1,885.00. 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 $24.725 and then at $25.00. Next support is seen at the overnight low of $24.25 and then at $24.00. 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.