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Mild price gains for gold on short covering

Kitco News

(Kitco News) - Gold prices are just a bit firmer and silver prices a bit weaker in quieter early U.S. trading Thursday. Modest short covering is featured in gold futures following recent selling pressure. Gold and silver markets are in bearish near-term technical postures, which is keeping the two precious metals markets’ bulls squeamish. December gold was last up $1.50 at $1,945.70 and December silver was down $0.183 at $23.32.

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U.S. stock indexes are pointed to weaker openings when the New York day session begins. Trader aned investor risk appetite in the marketplace is not keen at present.

In overnight news, China got more downbeat economic news as the world’s second-largest economy’s exports dropped 8.8% in August, year-on-year and contracting for a fourth consecutive month. China’s imports fell 7.3% in August, year-on-year. However, these numbers were slightly better than market expectations.

Meantime, the Euro zone second-quarter GDP came in at up 0.1% from the first quarter and up a revised 0.5%, year-on-year. Those numbers were weaker than expected.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are weaker and trading around $87.00 a barrel. The benchmark U.S. Treasury 10-year note yield is presently fetching 4.27%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, revised productivity and costs, and the weekly DOE liquid energy stocks report. Several Federal Reserve officials are scheduled to give speeches today.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the September high of $1,980.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at Wednesday’s high of $1,954.50 and then at $1,965.00. First support is seen at this week’s low of $1,940.00 and then at $1,925.00. Wyckoff's Market Rating: 3.5.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at this week’s high of $24.655. The next downside price objective for the bears is closing prices below solid support at the August low of $22.585. First resistance is seen at $24.00 and then at $24.25. Next support is seen at $23.00 and then at $22.585. Wyckoff's Market Rating: 4.0.

Rising bond yields drive outflows from gold ETFs, but long-term support remains

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