Gold price a bit higher as European bank turmoil heats up
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(Kitco News) - Gold and silver prices are slightly up in early U.S. trading Friday, with silver hitting a six-week high. Safe-haven buying is keeping a floor under the two precious metals’ prices, heading into another uncertain weekend on the U.S. and European banking front. April gold was last up $1.20 at $1,997.00 and May silver was up $0.059 at $23.32.
Risk aversion is again elevated to end the trading week, as focus is now on credit default swaps with Deutsch Bank that are suggesting stress for that bank. The recent series of banking problems in the U.S. and Europe are playing out as some veteran financial market watchers expected: sort of a rolling crisis that shows no signs of letting up. The Federal Reserve reported Thursday afternoon that U.S. banks drew on $165 billion from the Federal Reserve lending facility in the week ending March 22, highlighting lenders’ concerns over available interbank liquidity, Bloomberg reported.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins.
In overnight news, reports said the U.S. military retaliated with air strikes on Iranian-backed militants in Syria after an Iranian drone strike in that region killed a U.S. worker and injured U.S. military personnel.
|Banking uncertainty spurs gold gains, will trade around $2,000 through 2023 - State Street's George Milling Stanley|
The key outside markets today see the U.S. dollar index higher on safe-haven demand. Nymex crude oil futures prices are sharply lower and are trading around $67.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.3%.
U.S. economic data due for release Friday includes durable goods orders and the U.S. flash services and manufacturing purchasing managers’ indexes.
Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a fledgling uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at this week’s high of $2,014.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,936.50. First resistance is seen at Thursday’s high of $2,006.10 and then at $2,014.90. First support is seen at the overnight low of $1,983.70 and then at $1,975.00. Wyckoff's Market Rating: 8.0
The silver bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.50. First resistance is seen at the overnight high of $23.46 and then at $23.75. Next support is seen at $23.00 and then at $22.50. Wyckoff's Market Rating: 7.0.