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Price gains for gold as risk appetite recedes a bit

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(Kitco News) - Gold futures prices are firmer in early U.S. trading Thursday. The precious metals are seeing some support from a weaker U.S. dollar index on this day and a pause in the global equity markets’ rallies, as traders and investors focus more on the present Covid-19 grim conditions. December gold futures were last up $7.50 at $1,869.10 and December Comex silver was last down $0.002 at $24.265 an ounce.

Global stock markets were mixed overnight, while U.S. stock indexes are also mixed ahead of the New York day session. The U.S. has seen over 240,000 deaths and more than 10.3 million confirmed Covid-19 infections, with new cases soaring to all-time highs of well over 120,000 per day over the past week. The marketplace is paying more attention to the worrisome news as the likelihood of increasing business and public-gathering restrictions in the weeks and months ahead is rapidly growing. While news earlier this week of successful Covid vaccines coming on line in the coming months boosted trader and investor confidence, that initial euphoria has waned as the week has progressed.

The marketplace is also becoming increasingly concerned, although not seriously alarmed yet, about a smooth transition of power for the U.S. presidency. Outgoing President Trump is not conceding the election he lost and appears to be hampering President-elect Biden’s transition to power. Trump this week fired the U.S. military’s leader, defense secretary Mark Esper.

In overnight news, the Eurozone got some downbeat economic news, as its industrial output for September fell by 0.4% from August and was down 6.8%, year-on-year. Those numbers were weaker than expected.

U.S. Treasury bond and note yields have risen to eight-month highs this week, on the prospects for a solid U.S. economic recovery in the second half of 2021. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.94%.

The U.S. dollar index is weaker early today. The other important outside market sees crude oil prices slightly higher and trading around $41.50 a barrel.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the consumer price index, real earnings, the monthly Treasury budget statement and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bulls still have the overall near-term technical advantage but are fading this week. A minor bearish pennant pattern has formed on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at this week’s high of $1,966.10. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,848.00. First resistance is seen at Tuesday’s high of $1,888.90 and then at $1,900.00. First support is seen at Wednesday’s low of $1,853.90 and then at $1,848.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage but have faded this week. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the October low of $22.625. First resistance is seen at Tuesday’s high of $24.58 and then at $25.00. Next support is seen at Wednesday’s low of $23.81 and then at this week’s low of $23.60. 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.