(Kitco News) - Gold prices are firmer in early U.S. trading Friday, on a corrective bounce from Thursday’s strong selling pressure. Gold may also be getting a mild safe-haven bid as the U.S. and global stock markets are selling off in the wake of still-hawkish major central banks. Silver prices are a bit lower today. February gold was last up $8.00 at $1,795.80 and March silver was down $0.155 at $23.15.
The stock markets continue to suffer a hangover from a hawkish FOMC meeting this week that saw the Fed raise its main interest rate by 0.5% and stick with its rhetoric that more monetary policy tightening is needed to successfully tamp down inflation. The European Central Bank on Thursday also raised its main interest rate by a half-point and also sounded a hawkish tone on its monetary policy. The hawkish central banks were also bearish for the precious metals, but the gold bulls Friday morning are starting to look past those events.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings and five-week lows when the New York day session begins.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are lower and trading around $74.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.497%.
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| The ECB's aggressive monetary policy stance gives gold a lifeline as euro makes a move against U.S. dollar |
In overnight news, the Euro zone consumer price index for November came in at up 10.1%, year-on-year, which was close to market expectations and compares to a revised rise of 10.0% in the October report.
U.S. economic data due for release Friday is light and includes the U.S. flash manufacturing and services purchasing managers’ indexes.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls have the overall near-term technical advantage but have faded. Prices are still in a five-week-old uptrend on the daily bar chart—but just barely. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at this week’s high of $1,836.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at $1,800.00 and then at Thursday’s high of $1,819.70. First support is seen at this week’s low of $1,782.00 and then at $1,778.10. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the overall near-term technical advantage. A choppy, three-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today’s high of $23.41 and then at $23.69. Next support is seen at today’s low of $22.735 and then at $22.50. Wyckoff's Market Rating: 6.5.
