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Gold, silver see routine price corrections after recent gains

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Friday, on normal corrective pullbacks after both markets hit four-week highs on Thursday. December gold futures were last down $18.60 at $1,779.40. December Comex silver was last down $0.202 at $23.275 an ounce.

Global stock markets were mostly higher in overnight trading. The U.S. stock indexes are pointed to higher openings when the New York day session begins. The stock index bulls have gained strength late this week, amid corporate earnings reports that have been generally upbeat.

The key U.S. data point Friday is the monthly retail sales report for September, which is forecast down 0.2% from August after a gain of 0.7% in August from July.

Traders and investors have been watching developments on raw commodity/supply chain front. Winter is approaching in the Northern Hemisphere and some countries are worried about securing adequate energy supplies. The U.S. government has implemented 24-hour-a-day work shifts at major West Coast U.S. ports. And raw material prices are rising rapidly, with copper prices on the London Metal Exchange rising over 7% just this week. All of the above are likely to add to inflationary price pressures that could become problematic down the road. Such a scenario would be bullish for the metals markets.

The U.S. Securities and Exchange Commission appears ready to allow the first U.S. Bitcoin futures exchange-traded fund to begin trading. That helped push Bitcoin to within striking distance of $60,000 Friday.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures are higher, hit a seven-year high and trading around $82.00 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching around 1.547%.    

U.S. economic data due for release Friday includes the Empire State manufacturing survey, retail sales, import and export prices, manufacturing and trade inventories and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bulls have the slight overall near-term technical advantage as prices are trending higher on the daily chart. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,836.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,749.90. First resistance is seen at the overnight high of $1,797.70 and then at this week’s high of $1,801.90. First support is seen at $1,770.00 and then at $1,757.90. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. However, bulls are working on a fledgling price uptrend. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at the overnight high of $23.645 and then at $24.00. Next support is seen at Thursday’s low of $22.925 and then at $22.50. Wyckoff's Market Rating: 3.5.

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.