(Kitco News) - Gold and silver prices are weaker again in early U.S. trading Friday, with gold hitting a nearly 2.5-year low overnight. The relentless appreciation of the U.S. dollar on the foreign exchange market and rising U.S. Treasury yields remain bearish fundamental elements that are keeping buyers of the two precious metals scarce. October gold was last down $5.10 at $1,661.70 and December silver was down $0.244 at $19.03.
Global stock markets were mixed but mostly lower overnight. U.S. stock indexes are pointed to lower openings and two-month lows when the New York day session begins. The marketplace is more anxious late this week, after absorbing a hot U.S. consumer price index report on Tuesday. Traders are focusing on next week’s FOMC meeting that begins Tuesday and ends Wednesday afternoon. The FOMC is expected to raise the key U.S. Fed funds rate by 0.75% in the Fed’s effort to tamp down problematic price inflation. Also, a very dour earnings report from Federal Express Thursday has helped to dampen investor spirits to end the trading week. Again, the safe-haven metals are not seeing good safe-haven bids amid the marketplace anxiety.
In overnight news, the Eurozone reported its consumer price index for August at up 9.1%, year-on-year, which was in line with market expectations.
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The key outside markets today see Nymex crude oil prices firmer and trading around $86.00 a barrel. The U.S. dollar index is up in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 3.463%. The 2-year U.S. Treasury note yield climbed to 3.901%, which is the highest level since 2007.
U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey and Treasury international capital data.
![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 in a downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at $1,686.30 and then at $1,700.00. First support is seen at the overnight low of $1,651.90 and then at $1,650.00. Wyckoff's Market Rating: 1.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
September silver futures bears have the overall near-term technical advantage and have gained momentum this week. 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 $18.00. First resistance is seen at the overnight high of $19.215 and then at Thursday’s high of $19.625. Next support is seen at the overnight low of $18.77 and then at $18.50. Wyckoff's Market Rating: 2.5.
