(Kitco News) - Gold and silver prices are firmer in early U.S. trading Thursday, supported by a drop in the U.S. dollar index from the 20-year high posted on Wednesday. Falling U.S. Treasury bond yields the past two trading sessions are also friendly for the metals markets. Short covering in the futures markets is featured in both metals. October gold was last up $8.40 at $1,726.80 and December silver was up $0.37 at $18.63.
Global stock markets were mostly firmer overnight, following the strong gains in the U.S. stock market on Wednesday. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The feature in the marketplace late this week is the big drop in crude oil prices, amid concerns of global economic recession as most major central banks are tightening their monetary policies. The Federal Reserve’s beige book, out Wednesday afternoon, pointed out weaker U.S. economic growth. Fed Chairman Jerome Powell will speak today at a Cato Institute panel discussion. It’s his last scheduled speech before the Sept. 20-21 FOMC meeting. The European Central Bank meets today and most expect the ECB to raise its main interest rate by 75 basis points.
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| Gold remains undervalued as markets continue to price in a pivot in second half of 2023 - Quant Insight |
The key outside markets today see Nymex crude oil prices near steady and trading around $82.00 a barrel after hitting an eight-month low overnight. The U.S. dollar index is lower on a corrective pullback after hitting a 20-year high Wednesday. The yield on the 10-year U.S. Treasury note is fetching 3.25%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, consumer credit and the DOE liquid energy stocks report.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the October gold futures bears have the solid overall near-term technical advantage. Prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,769.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at the overnight high of $1,729.30 and then at $1,740.00. First support is seen at the overnight low of $1,715.40 and then at $1,700.00. Wyckoff's Market Rating: 2.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $19.00 and then at $19.385. Next support is seen at the overnight low of $18.32 and then at $18.00. Wyckoff's Market Rating: 2.5.
