(Kitco News) - Gold and silver futures prices are near steady in early U.S. trading Thursday after spot gold hit a record high of $2,689 overnight. Some just-released and better-than-expected U.S. economic data has put a bit of downside price pressure on the two precious metals. December gold was last down $1.10 at $2,689.50 and December silver was down $0.124 at $31.855.
A very heavy slate of U.S. economic data is due out Thursday, highlighted by the retail sales and weekly jobless claims reports. September retail sales came in at up 0.4%, month-on-month and were seen coming in at up 0.3% from August. That compares to a rise of 0.1% in the August report. Weekly jobless claims came in at up 241,000 and were seen up 260,000. That compares to last week’s report showing a rise of 258,000. These two reports fall into the camp of the U.S. monetary policy hawks, who want to see the Fed restrained on its interest-rate-cutting path. However, today’s data is unlikely to change the trajectory of the Fed’s money policy.
The European Central Bank met today and announced a 25 basis-point cut to its main interest rate, taking the deposit facility rate to 3.25%. The move was expected by the marketplace.
Asian and European stock indexes were mixed overnight, with Asian shares mostly weaker and European shares mostly firmer. U.S. stock indexes are pointed to higher openings and at or not far below record highs when the New York day session begins.
In overnight news, broker SP Angel reported Hong Kong officials have plans to develop the region into a gold trading hub. The Hong Kong Chief Executive said that “amid the increasingly complicated geopolitics, our city’s security and stability gives us a clear edge as an attractive place for physical gold storage.” The broker said gold is becoming increasingly popular with developing economies looking to diversify their foreign reserves, as seen in the huge builds by China, Russia and Turkey over the past few years. The BRICS summit begins next week, with de-dollarization a key part of the agenda, hosted by Russia.
China’s housing minister today made remarks on the troubled property sector, but the Chinese markets were non-plussed by his comments because no new stimulus measures were announced.
The key outside markets today see the U.S. dollar index slightly lower. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.07%, up a bit after the U.S. data dump this morning. Crude oil prices are a bit higher and trading around $70.75 a barrel.
Other U.S. economic data due for release Thursday includes the Philadelphia Fed business survey, industrial production and capacity utilization, the NAHB housing index, manufacturing and trade inventories, the weekly DOE liquid energy stocks report, the monthly Treasury budget statement and Treasury international capital data.
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 the contract high of $2,708.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the October low of $2,648.90. First resistance is seen at the overnight high of $2,704.20 and then at $2,708.70. First support is seen at Wednesday’s low of $2,674.90 and then at this week’s low of $2,654.40. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the firm overall near-term technical advantage. Prices are in a nine-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 the October low of $30.345. First resistance is seen at this week’s high of $32.385 and then at $33.00. Next support is seen at the overnight low of $31.54 and then at $31.00. Wyckoff's Market Rating: 7.0.
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