(Kitco News) - Gold and silver prices are up a bit in midday U.S. trading Thursday, as trading has turned more subdued ahead of some major U.S. economic data on Friday morning. December gold was last up $3.50 at $2,673.20 and December silver was up $0.28 at $32.21.
On tap Friday morning is the September U.S. employment situation report from the Labor Department, arguably the most important U.S. data point of the month. The key non-farm payrolls number is seen coming in at up 150,000 compared to a rise of 142,000 jobs in the August report.
U.S. stock indexes are mixed near midday. There is keener risk aversion in the general marketplace this week. Israel continues its offensive in Lebanon and has vowed to retaliate against Iran’s missile attack this week. Most believe the situation will further escalate.
A Barron’s story today says, “It’s rare for gold to beat stocks, but it’s doing so handily this year.” The story adds that short-term traders are part of the reason and “hedge funds have piled in—collectively they are more bullish than at any time since at least the mid-1980s.” Safe-haven demand, generally lower global interest rates, central bank buying and bullish technical charts are the main elements pushing gold prices north the past few months.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are solidly higher and trading around $73.25 a barrel. Oil has been boosted by the Middle East flare-up. However, gains have been limited on reports OPEC-plus may roll back some production cuts. Reads a DowJones Newswires headline today: “Middle East escalation could push oil to $100 but spike likely short-lived.” The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching around 3.8%.
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 $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at the overnight high of $2,683.40 and then at this week’s high of $2,694.70. First support is seen at the overnight low of $2,657.80 and then at this week’s low of $2,646.20. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the solid overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.50 and then at $33.00. Next support is seen at the overnight low of $31.65 and then at this week’s low of $31.155. Wyckoff's Market Rating: 7.5.
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