(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, with silver pushing to a 14-year high. Safe-haven demand is featured to end the trading week and heading into the weekend. Bullish technical are also fueling buying interest from the chart watchers. December gold was last up $16.30 at $3,689.90. December silver prices were up $0.731 at $42.88.
Gold this week hit an all-time high of $3,674.27 an ounce, basis spot prices. The spot price of gold has eclipsed its inflation-adjusted peak set on Jan. 21, 1980, when prices topped out at $850.00, which equates to about $3,590 in today's dollars, according to one valuation method. “Gold's rally has been driven by growing anxiety about the U.S. economic trajectory, with investors seeking a hedge against rising prices and weakening currencies, and its price could vault higher if equity markets start to creak, said a Bloomberg report.
Global stocks were mixed overnight. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins.
In other news, U.S. Treasury Secretary Bessent will meet with Chinese Vice Premier He Lifeng in Madrid, Spain next week to discuss trade, economic and national security issues in another sign that talks between the two sides are making progress. The discussions next week will also cover TikTok’s status and efforts to combat money laundering, according to a schedule released by the Treasury Department on Thursday. The economic talks next week come as Washington and Beijing have engaged in communications this week, smoothing the path for a potential summit meeting between Chinese Premier Xi Jinping and President Trump.
The U.S. and India are close to resolving differences over a trade deal, according to Sergio Gor, President Trump's pick for ambassador to India. Gor’s comments were made at a U.S. Senate confirmation hearing Thursday. India's purchases of Russian oil remain a key point of tension in the relationship, with the U.S. demanding that India stop buying Russian oil. The U.S. is pressuring India to stop buying Russian oil, which is helping Russian President Putin finance his war in Ukraine, and has slapped India with tariffs as a penalty.
Mortgage rates in the U.S. this week have fallen by the most in a year, fueling a surge in refinancing demand, according to a Bloomberg report. The average for 30-year fixed loans was 6.35%, down from 6.5% last week, according to Freddie Mac. Falling rates will also boost home purchases, according to Kevin Peranio, a partner with Paramount Residential Mortgage Group. Borrowing costs have been trending lower for months and took another leg down after a disappointing jobs report last Friday increased the likelihood of more rate cuts from the Federal Reserve. By Monday, consumers were able to lock in 30-year rates at 6.27%, the lowest in almost a year, according to data from Texas-based Optimal Blue, a mortgage technology provider and as reported by Bloomberg. On Tuesday, as rates ticked up a bit, the volume of refinancing rate locks surged to the highest level for any single day since 2022, the company said.
The key outside markets today see the U.S. dollar index modestly up, while crude oil prices are also slightly up and trading around $62.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.05%.
U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.
Technically, December gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,550.00. First resistance is seen at $3,700.00 and then at this week’s contract high of $3,715.20. First support is seen at the overnight low of $3,667.30 and then at $3,650.00. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the strong overall near-term technical advantage. A bull flag or pennant pattern has formed on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $40.00. First resistance is seen at $43.50 and then at $44.00. Next support is seen at $42.00 and then at this week’s low of $41.08. Wyckoff's Market Rating: 9.0
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