Price gains for gold, silver as bulls regain some footing
(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Friday. The metals bulls late this week have stabilized their markets after the early-week sell off. That begins to suggest this week’s lows are near-term market bottoms. A weaker U.S. dollar index to end the trading week is also working in favor of the metals market bulls. October gold futures were last up $7.30 at $1,757.10 and September Comex silver was last up $0.239 at $23.36 an ounce.
Global stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down. The U.S. stock indexes are pointed to slightly higher openings when the New York day session begins and are at or near their record highs. Risk aversion remains low this summer. Good corporate earnings reports the past few weeks have kept trader and investor attitudes upbeat. However, storm clouds are on the horizon. Bloomberg reports fears are increasing that the spread of the delta variantmay lead toa repeat of last year’s shipping bottlenecks. The partial closure of the world’s third-busiest container port Thursday (Los Angeles) is putting pressure on already-strained supply chains ahead of the key shopping season. Bloomberg said the hub of Los Angeles is already bracing for another potential decline of traffic from China. The resulting delayscould add to the price of container shipping, which is already up more than 220% this year.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are a bit weaker and trading around $69.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.342%.
U.S. economic data due for release Friday includes import and export prices and the University of Michigan consumer sentiment survey.
Technically, October gold futures bears have the overall near-term technical advantage but the bulls have stabilized prices late this week. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s spike low of $1,676.40. First resistance is seen at this week’s high of $1,763.00 and then at $1,775.00. First support is seen at Thursday’s low of $1,740.60 and then at $1,730.00. Wyckoff's Market Rating: 4.0
The silver bears have the solid overall near-term technical advantage. Prices are in an 11-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing September futures 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 this week’s low of $22.295. First resistance is seen at Tuesday’s high of $23.675 and then at $24.00. Next support is seen at the overnight low of $23.13 and then at this week’s low of $22.97. Wyckoff's Market Rating: 2.5.