(Kitco News) - Gold prices are solidly up and hit a three-week high in early U.S. trading Friday. Silver prices are moderately higher. Bullish technicals are fueling strong speculator buying interest in the yellow metal on this last trading day before the Christmas holiday on Monday. The precious metals traders are awaiting an important U.S. inflation report due out shortly. February gold was last up $22.70 at $2,074.00. March silver was last up $0.20 at $24.785.
The U.S. economic data point of the day is the personal income and outlays report for November and its personal consumption expenditures (PCE) inflation numbers, which the Federal Reserve watches closely. The core PCE index is expected to be up 3.3%, year-on-year compared to up 3.5% in the October report.
Asian and European stock markets were mixed overnight. U.S. stock index futures are set to open slightly lower when the New York day session begins. Look for quieter trading on this last business day before the Christmas holiday next Monday.
The Houthi missile and drone attacks on random ships in the Red Sea have prompted renewed inflation worries. And there are also worries about drought impacting the Panama Canal. Barrons today reported “ocean freight rates are surging, putting pressure on companies that rely on cheap shipping.” A U.S.-led military contingent is set to guard the Red Sea shipping route, but major shippers are leery that the contingent can stop every attack.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are firmer and trading around $74.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 3.867%.
Other U.S. economic data due out today includes durable goods orders, new residential sales and the University of Michigan consumer sentiment survey.
Technically, the gold futures bulls have the solid overall near-term technical advantage and have momentum. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in March futures above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,085.00 and then at $2,100.00. First support is seen at the overnight low of $2,058.20 and then at $2,000.00. Wyckoff's Market Rating: 7.5
The silver bulls have the overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at the December low of $22.785. First resistance is seen at today’s high of $24.84 and then at $25.00. Next support is seen at Thursday’s low of $24.43 and then at Wednesday’s low of $24.245. Wyckoff's Market Rating: 6.5.
Try out my “Markets Front Burner” email report. My next one is due out today and is going to be entitled, “When China sneezes...” Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it’s free! Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html .
