(Kitco News) - Gold and silver prices are moderately higher in midday U.S. trading Thursday, on a bit of safe-haven buying due to a budget crisis in the U.K. February gold was last up $14.60 at $2,687.10 and March silver was up $0.275 at $30.965.
U.K. financial markets tumbled overnight on growing worries over the government’s budget deficit, with the British pound hitting the lowest level in more than a year against the U.S. dollar. The 10-year U.K. gilt yield jumped to 4.92% and the FTSE 250 Index dropped for a third day in a row. This situation is being closely watched by the global marketplace, which is worried about a contagion effect.
The U.S. government and stock market are closed today for former President Jimmy Carter’s national day of mourning. Other U.S. markets trade normal to abbreviated hours.
The U.S. data point of the week is the employment situation report for December on Friday. It’s forecast to show non-payrolls increasing by 160,000. That compares to a gain of 227,000 in the November jobs report.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil futures prices are slightly up and trading around $74.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.6%.
Technically, February gold futures bulls have the 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 the November low of $2,565.00. First resistance is seen at $2,700.00 and then at $2,718.00. First support is seen at today’s low of $2,673.70 and then at $2,650.00. Wyckoff's Market Rating: 6.5.
March silver futures bears have the slight overall near-term technical advantage. A nine-week-old downtrend is still in place on the daily bar chart. More gains this week would negate the downtrend, however. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. The next downside price objective for the bears is closing prices below solid support at the December low of $29.145. First resistance is seen at $31.50 and then at $32.00. Next support is seen at $30.50 and then at $30.00. Wyckoff's Market Rating: 4.5.
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