(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Thursday, benefitting from bullish daily outside-market elements that include a weaker U.S. dollar index, firmer crude oil prices and a dip in U.S. Treasury yields. Safe-haven demand remains a major underlying supportive factor for the precious metals and is keeping a solid floor under prices. December gold was last up $23.20 at $2,752.70 and December silver was up $0.436 at $34.27.
At the BRICS summit in Kazan, Russia, Russian President Vladimir Putin introduced a new international payments framework aimed at reducing reliance on the U.S. dollar, which he accused of being used as a "weapon" by Western powers. The proposed system, known as "BRICS Bridge," would utilize blockchain, tokens and digital currencies as an alternative to the SWIFT system. This initiative reflects a broader interest among non-Western countries to avoid potential exclusion from global financial systems dominated by the United States. Despite the ambitious proposal, practical implementation remains uncertain. The U.S. has warned that cooperating with Russia's financial system could result in losing access to the dollar, complicating efforts to establish a sanctions-proof network. Meanwhile, Chinese President Xi Jinping said Beijing supports more global south countries joining the BRICS group as he called on the bloc to take the lead in reforming the global economic governance system. This "de-dollarization" is a bullish longer-term factor for the gold market.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to mostly higher openings when the New York day session begins.
On this day in 1929, a massive sell-off at the opening bell of the New York Stock Exchange led to chaos as stockbrokers couldn't keep up with trade requests. Though the market recovered some loses by the end of the day, "Black Thursday" marked the beginning of the Wall Street Crash of 1929.
The key outside markets today see the U.S. dollar index lower. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.20%. Crude oil prices are firmer and trading around $71.50 a barrel.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, the U.S. flash manufacturing and services purchasing managers indexes, new residential sales and the Kansas City Fed manufacturing 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 $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,650.00. First resistance is seen at the contract high of $2,772.60 and then at $2,800.00. First support is seen at the overnight low of $2,728.70 and then at this week's low of $2,722.10. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the solid overall near-term technical advantage. Prices are in an accelerating 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at the overnight high of $34.48 and then at this week's high of $35.07. Next support is seen at $34.00 and then at this week's low of $33.61. Wyckoff's Market Rating: 8.5.
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