(Kitco News) - Gold and silver prices are a bit lower in early U.S. trading Friday, but the bulls have been able to stabilize the two precious metals markets following a mid-week downdraft. A rebound in the U.S. dollar index and lower crude oil prices today are working in favor of the metals market bears. December gold was last down $7.10 at $2,698.70 and December silver was down $0.08 at $31.775.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins. The U.S. stock market is seeing a pause Friday after rallying strongly on the decisive victory by Donald Trump in the U.S. presidential race.
The marketplace showed little reaction to the Fed’s FOMC cutting its main interest rate by 0.25% Thursday afternoon. Fed Chairman Powell made no markets-moving statements but did surprise market watchers by stating a resounding “no” when asked it he would resign if incoming President Trump asked him to do so. A Barron’s headline today reads: “Trump is coming for Jerome Powell.
Some words of wisdom from Christopher Brightman, chief executive officer of Research Affiliates: “The bond market is going to be the arbiter of what (Trump) policies are going to be acceptable. We have no fiscal space left in the U.S. The bond market will be the constraint on economic policy coming out of the Trump Administration.”
The concluding meeting of this week’s China’s standing committee of the National People’s Congress (NPC) saw it approve a $1.4 trillion bill allowing local governments to issue special bonds to relieve debt burdens. Chinese stock indexes sold off in after-hours trade as the numbers were viewed as “underwhelming,” said Trade Nation. The NPC did not announce any new fiscal stimulus measures, which was also disappointing to the marketplace. This comes amid tariff concerns on Chinese exports to the U.S. following Trump’s election victory.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are lower and trading around $71.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.308%.
U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.
Technically, December gold bulls have the overall near-term technical advantage but have faded. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,801.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the October low of $2,618.80. First resistance is seen at the overnight high of $2,717.80 and then at $2,735.00. First support is seen at the overnight low of $2,687.30 and then at $2,675.00. Wyckoff's Market Rating: 7.0.
December silver futures bulls still have the overall near-term technical advantage but have faded. A three-month-old uptrend on the daily bar chart is in jeopardy. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at $32.50. Next support is seen at the overnight low of $31.42 and then at this week’s low of $30.94. Wyckoff's Market Rating: 6.0.
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