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Gold price up amid bullish outside markets

Kitco News

(Kitco News) - Gold and silver prices are higher in early U.S. trading Thursday, supported by bullish daily outside market forces that include a solidly lower U.S. dollar index, higher crude oil prices and a dip in U.S. Treasury yields. December gold was last up $8.70 at $1,996.20. December silver was last up $0.37 at $23.16.

Asian and European stocks were mixed to firmer overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins. The marketplace has mostly digested Wednesday's FOMC meeting results. The Fed did not raise U.S. interest rates, which was what the marketplace expected. Fed Chairman Jerome Powell hinted the central bank might be done raising interest rates for now but did not rule out future rate hikes.

The Bank of England is meeting on its monetary policy Thursday. No changes are expected from the BOE.

Friday comes the U.S. employment situation report for October. The key non-farm payrolls number is seen coming in at up 170,000 compared to a rise of 336,000 in the September report.

The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are up and trading around $81.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.718%.

Powell is not hawkish enough to worry the gold market as prices hold near-term support

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, preliminary productivity and costs, manufacturers' shipments and inventories, the global manufacturing PMI and monthly retail chain store sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the near-term technical advantage. Prices are still trending higher on the daily bar chart. Bulls' next upside price objective is to produce a close in December futures above solid resistance at $2,050.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at $2,000.00 and then at $2,010.00. First support is seen at the overnight low of $1,989.30 and then at this week's low of $1,978.20. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the slight overall near-term technical advantage. However, an uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.05. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.50 and then at this week's high of $23.75. Next support is seen at last week's low of $22.565 and then at $22.25. Wyckoff's Market Rating: 5.5.

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