(Kitco News) - Gold prices are solidly higher and silver modestly up in early U.S. trading Thursday. The technical charts still favor the gold market bulls. A weaker U.S. dollar index today and a shaky U.S. stock market late this week are also supporting buying interest in the safe-haven metals. December gold was last up $18.90 at $2,451.30. September silver was up $0.216 at $27.16.
Asian and European stock indexes were mostly lower overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. After a rough start to the trading week, the stock indexes have seen price stabilization, but the bulls are not out of the woods yet. The near-term technical postures for the U.S. stock indexes are shaky at present.
Reports said China’s central bank again held off buying gold for a third straight month. Sovereign countries’ demand for gold fell to 39% of the market in the second quarter versus the first quarter, as central banks stepped back amid rising gold prices. Second-quarter sovereign gold demand rose 4%, year-on-year.
There are still concerns regarding a flare-up in Middle East military action. Israel has been braced for a major attack from Iran and its proxies after Israel recently assassinated key military officials from Hamas and Hezbollah. This matter could be the next major geopolitical event that rattles the marketplace.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are near steady and are trading around $75.25 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.90%.
U.S. economic reports out Thursday include the weekly jobless claims report, monthly wholesale trade and the monthly retail chain store sales report.
Technically, December gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,537.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at Tuesday’s high of 2,459.50 and then at $2,475.00. First support is seen at the overnight low of $2,420.20 and then at this week’s low of $2,403.80. Wyckoff's Market Rating: 6.5.
September silver futures bears have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart.
Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $39.355. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at Tuesday’s high of $27.67 and then at $28.00. Next support is seen at the overnight low of $26.505 and then at $26.00. Wyckoff's Market Rating: 3.5
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