Gold, silver see price gains as Covid-19 rages in U.S.
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(Kitco News) - Gold and silver futures prices are higher in early U.S. trading Friday, on safe-haven demand heading into the weekend and as the Covid-19 pandemic is out of control in the U.S. The precious metals are also seeing some support from a weaker U.S. dollar index on this day. December gold futures were last up $13.20 at $1,886.60 and December Comex silver was last down $0.444 at $24.76 an ounce.
Global stock markets were mixed to lower overnight, while U.S. stock indexes are pointed toward higher openings when the New York day session begins. The marketplace has seen risk appetite dented late this week as the Covid-19 pandemic is raging in the U.S. and Europe. Families are facing the grim reality of spending the upcoming holidays apart.
A survey by Central Banking and Invesco says the Covid-19 pandemic has led to 23% of world central banks seeing gold as a more attractive asset, while the remaining 77% responded their view on gold had not changed. Central bankers generally expect their gold holdings to increase over the next year. General public investor demand for gold has been robust this year as the investing public still sees bullion as a safe-haven asset, the report said.
U.S. Treasury bond and note yields have backed off a bit Friday after rising to eight-month highs earlier this week. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.88% after pushing closer to 1.0% this week.
The U.S. dollar index is weaker early today. The other important outside market sees crude oil prices lower and trading around $40.50 a barrel.
U.S. economic data due for release Friday includes the producer price index, and the University of Michigan consumer sentiment survey.
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 the overnight low of $1,872.10 and then at Thursday’s low of $1,860.70. Wyckoff's Market Rating: 6.5
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 $25.00 and then at $25.50. Next support is seen at the overnight low of $24.215 and then at $24.00. Wyckoff's Market Rating: 6.5.