Price pullbacks for gold, silver following recent gains
(Kitco News) - Gold and silver prices lower in early U.S. trading Thursday, on routine corrective pullbacks after recent gains. A firmer U.S. dollar index on this day is also a negative outside market element for the metals markets. Don’t be surprised to see the gold and silver bulls step in to buy the dips in prices before the end of the trading session today. December gold futures were last down $6.00 at $1,778.90. December Comex silver was last down $0.305 at $24.14 an ounce.
Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are pointed to slightly lower openings when the New York day session begins. The U.S. stock market bulls are back in business as the S&P 500 and the Nasdaq indexes are closing on their record highs scored in September. A good corporate earnings season has lifted trader and investor risk sentiment as they work through what can be the historically difficult month of October. For the moment it appears the marketplace has pushed to the back burner rising inflation and the prospect of major global economies slowing down in theor post-pandemic recoveries.
The key outside markets today see the U.S. dollar index firmer after hitting another three-week low overnight. Crude oil prices are lower and trading around $83.00 a barrel after hitting a seven-year high overnight. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.654%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, existing home sales and leading economic indicators.
Technically, December gold futures bulls have the 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 October high of $1,801.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,721.10. First resistance is seen at today’s high of $1,790.30 and then at $1,800.00. First support is seen at Wednesday’s low of $1,767.10 and then at this week’s low of $1,760.30. Wyckoff's Market Rating: 6.0
The silver bulls have the overall near-term technical advantage. Prices are in a three-week-old uptrend. Silver bulls' next upside price objective is closing December 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 $22.50. First resistance is seen at the overnight high of $24.55 and then at the September high of $24.945. Next support is seen at $24.00 and then at Wednesday’s low of $23.615. Wyckoff's Market Rating: 6.0.