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Gold price firmer in quieter trading; U.S. CPI next focal point

Kitco News

(Kitco News) - Gold prices are firmer and silver prices near steady in more quiet early U.S. trading Friday. More mild short covering is featured in gold futures, along with some perceived bargain hunting following recent losses. December gold was last up $4.80 at $1,947.30 and December silver was up $0.050 at $23.29.

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Asian and European stock markets were mostly weaker overnight. U.S. stock indexes are pointed to slightly weaker openings when the New York day session begins. Traders and investors are waiting for the next major U.S. data point, which will likely be the consumer price index report for August, out next Wednesday. Trading may remain quieter until that time.

The key outside markets today see the U.S. dollar index slightly down but not far below this week’s six-month high. Nymex crude oil prices are firmer and trading around $87.50 a barrel—not far below this week’s 10-month high. The benchmark U.S. Treasury 10-year note yield is presently fetching 4.24%.

China buys 29 tonnes of gold in August, stretches buying spree to 10 months

U.S. economic data due for release Friday is light and includes monthly wholesale trade inventories and consumer credit.

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. 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 $23.50 and then at $24.00. Next support is seen at this week’s low of $23.13 and then at $23.00. 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.