(Kitco News) - Gold and silver prices are posting good gains in early U.S. trading Thursday, on corrective bounces and perceived bargain hunting following recent selling pressure. Daily price volatility remains high. December gold was last up $62.60 at $4,126.50. December silver prices were up $1.25 at $48.93.
Global stock markets were mixed to weaker overnight. U.S. stock indexes are pointed to narrowly mixed openings when the New York day session begins.
In overnight news, spot prices for platinum in London surged by as much as 6.4% to $1,646.03 an ounce on Wednesday, the biggest intraday jump since 2020. The benchmark spot contract hit a $53.45-per-ounce premium over futures, up from $28 on Tuesday, suggesting a scramble to obtain physical metal. Platinum is “tightening heavily with dislocations now pushing extremes, echoing fears of another silver-squeeze moment,” said Dan Ghali, senior commodity strategist at TD Securities and as reported by Bloomberg.
China says meeting with U.S. trade officials set for Friday. China said Vice Premier He Lifeng plans to meet with U.S. officials in Kuala Lumpur from Oct. 24 to 27 for the next round of trade talks, said a Bloomberg report. The meeting will take place to “discuss important issues” in the bilateral trade ties, according to the Commerce Ministry. A trade truce that’s set to run out on Nov. 10 is at stake unless extended, amid recent escalatory measures imposed by the U.S. and China against one another. President Trump on Wednesday said he was confident of striking a trade deal with his Chinese counterpart when they meet in South Korea next week, including an agreement on agricultural purchases. Trump told reporters in the Oval Office that he would speak with Chinese President Xi Jinping on Russian oil, resuming soybean purchases and rare earths exports. “We’ll make a deal on, I think, everything,” Trump said.
Crude oil prices spike after U.S. sanctions Russia’s biggest oil producers. The move by the Trump administration threatens supplies and could potentially spark a reshuffling of global trade flows. December Nymex crude oil prices early today were up $3.25 a barrel at $61.75. Brent crude oil jumped to trade above $65 a barrel, and its 7% rebound over the past two days is now the steepest in more than two years. “The blacklisting of Russian oil giants Rosneft PJSC and Lukoil PJSC comes against a backdrop of growing concerns with excess supplies as the OPEC-plus alliance, which Russia co-leads with Saudi Arabia, ramps up output. Senior refinery executives in India, a key buyer of Russian oil, said the restrictions would make it impossible for those flows to continue,” according to a report from Bloomberg. “It is a big deal,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “It may force a shift in the recent supply glut narrative, forcing traders to adjust their positions back to neutral or even bullish,” he said and as reported by Bloomberg.
The other key outside market today see the U.S. dollar index firmer. The yield on the benchmark 10-year U.S. Treasury note is presently 3.99%.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, December gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $4,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at the overnight high of $4,152.90 and then at Wednesday’s high of $4,175.00. First support is seen at the overnight low of $4,079.60 and then at this week’s low of $4,021.20. Wyckoff's Market Rating: 6.5.
The silver market bulls have the overall near-term technical advantage but stiff resistance levels lie above the market. 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 $45.00. First resistance is seen at $49.00 and then at $49.50. Next support is seen at the overnight low of $47.64 and then at $47.00. Wyckoff's Market Rating: 6.5.
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