Gold price near steady; fresh fundamental inputs awaited

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(Kitco News) - Gold prices are trading near unchanged in early U.S. trading Friday. A weaker U.S. dollar index is being offset by a drop in crude oil prices to a five-week low overnight. U.S. bond yields have risen a bit late this week, which leans slightly bearish for the safe-haven metals. The precious metals traders are looking for a spark of news to ignite some bigger price movements. December gold was last up $0.40 at $1,763.40 and December silver was up $0.22 at $21.195.

Global stock markets were mixed overnight. U.S. stock indexes are headed for higher openings when the New York day session begins. Trader and investor attitudes in the U.S. late this week are slightly upbeat after a better-than-expected U.S. retail sales report for October that was released Wednesday. However, enthusiasm was blunted Thursday by hawkish rhetoric coming from U.S. Federal Reserve officials, who ostensibly said the U.S. economy needs to dip into recession for a while in order to fully tamp down problematic inflation.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are lower, hit a five-week low overnight, and are trading around $81.25 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently 3.799%.

U.S. economic data due for release Friday includes existing home sales and leading economic indicators.

Technically, the gold futures bulls have the slight overall near-term technical advantage amid a fledgling price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,667.10. First resistance is seen at Thursday’s high of $1,777.60 and then at this week’s high of $1,791.80. First support is seen at this week’s low of $1,755.80 and then at $1,750.00. Wyckoff's Market Rating: 5.5.

The silver bulls have the overall near-term technical advantage. A choppy, 2.5-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $22.38. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at Thursday’s high of $21.535 and then at $22.00. Next support is seen at $21.00 and then at this week’s low of $20.785. Wyckoff's Market Rating: 6.0.