(Kitco News) - Gold and silver prices are higher, with silver sharply up, in early U.S. trading Friday and not far below gold’s record high and silver’s 14-year high scored Thursday. Steady safe-haven demand ahead of the weekend is featured today. December gold was last up $18.10 at $3,886.00. December silver prices were up $1.081 at $47.445.
It’s day three of the U.S. government shutdown and there are no signs of progress to end it. Democrats are standing firm in the face of President Trump’s threats to fire thousands of federal workers, with the two sides locked in a standoff that raises the prospects of lengthy furloughs and a prolonged disruption in U.S. government services. “The leaders of both parties are sticking to their talking points as the first shutdown in nearly seven years enters its third day. Lower-level negotiations have failed to strike a deal and another Senate vote Friday on a House-passed temporary spending bill is expected to fail,” said a Bloomberg report. The Senate is unlikely to hold votes over the weekend, almost certainly pushing the shutdown into next week as the two parties blame the other for the failure to reach an accord.
Global stock markets were mixed overnight. U.S. stock indexes are set to open slightly up and at record highs when the New York day session begins.
In other news a large fire broke out after an explosion at a Chevron Corp. refinery in Los Angeles County, according to CBS News and reported by Bloomberg. Firefighters responded after multiple reports of an explosion at the El Segundo operation, south of Los Angeles airport, on Thursday evening. According to the company website, the El Segundo refinery, built in 1911, supplies 20% of all motor vehicle fuels and 40% of the jet fuel consumed in southern California. Crude oil prices are slightly up on the news in early U.S. trading, after slumping to a four-month low of $60.40 in Nymex futures on Thursday.
The key outside markets today see the U.S. dollar index slightly down, while crude oil prices are firmer and trading around $60.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.092%.
U.S. economic data due for release today includes the U.S. services purchasing managers index (PMI) and the global services PMI.
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 $4,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,750.00. First resistance is seen at this week’s record high of $3,923.30 and then at $3,950.00. First support is seen at the overnight low of $3,861.10 and then at Thursday’s low of $3,842.80. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $50.00. The next downside price objective for the bears is closing prices below solid support at $44.00. First resistance is seen at this week’s high of $48.01 and then at $48.50. Next support is seen at the overnight low of $46.55 and then at this week’s low of $45.71. Wyckoff's Market Rating: 9.0.
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