(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, with gold hitting another record high and silver a three-week high. The most-active December Comex gold futures contract hit $2,601.00 overnight. The stars are presently aligned for the gold bulls, as both fundamental and technical factors firmly favor their camp. And silver is now catching gold’s upside tailwind. December gold was last up $16.10 at $2,596.80 and December silver was up $0.298 at $30.405.
The precious metals prices are being lifted by easier monetary policies from major central banks and a recently depreciating U.S. dollar on the foreign exchange market. Falling bond yields lately have also boosted the gold and silver markets.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins. The U.S. stock index bulls have had a very good week and have clawed back most of their September losses.
In the forex market, David Morrison of Trade Nation said today in an email dispatch: ”The Japanese yen has continued to strengthen. Overnight the USD-JPY fell to its lowest level since late December. This represents a drop of over 13% from the multi-decade high hit on U.S. Independence Day on 4th July. That is quite a turnaround for the currency pair, and it is a strong representation of the unwind in the yen-carry trade. It is also completely consistent with the current outlook which forecasts rate cuts from the Federal Reserve and further rate hikes from the Bank of Japan.”
A Wall Street Journal headline today reads: “Gloomy summer signals worsening picture for China’s economy.”
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are higher and trading around $69.75 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.648%.
U.S. economic data due out Friday includes import and export prices and the University of Michigan consumer sentiment survey.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,500.00. First resistance is seen at the overnight record high of $2,601.00 and then at $2,625.00. First support is seen at the overnight low of $2,585.00 and then at $2,570.40. Wyckoff's Market Rating: 9.5.
December silver futures bulls have gained the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at the August high of $30.67 and then at $31.00. Next support is seen at $30.00 and then at $29.55. Wyckoff's Market Rating: 6.0.
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