(Kitco News) - Gold and silver prices are up in early U.S. trading Friday, mildly supported by a slightly weaker U.S. dollar index and firmer crude oil prices so far today. Trader and investor eyes are on the U.S. stock indexes today, which have become wobbly recently. If the U.S. stock indexes see some solid selling pressure develop today, look for safe-haven gold and silver to see some better bidding. December gold was last up $13.10 at $4,004.40. December silver prices were up $0.50 at $48.45.
Global stock markets were mixed overnight. U.S. stock indexes are set to open lower in New York trading.
In overnight news: Gold exchange-traded funds in India are heading for record inflows, with this year’s purchases already close to $3 billion and translating to about 26 tons of the precious metal, according to a World Gold Council report. Investments so far in 2025 have almost matched the combined purchases in value terms seen from 2020 to 2024.
China sees surprise decline in exports in October. China’s exports unexpectedly contracted in October as global demand failed to offset the deepening slump in shipments to the U.S., “dealing a blow to an economy already slowing amid sluggish consumer spending and investment at home,” said a Bloomberg report. China’s exports fell for the first time in eight months, dropping 1.1% from a year earlier, according to official data released Friday. Shipments to all nations except the U.S. rose 3.1%, not enough to compensate for the more than 25% decline to the U.S. Chinese exports have been resilient until now, as other destinations made up for drops in shipments across the Pacific Ocean. Sales abroad had grown every month since February, when activity slowed because of the Lunar New Year holiday. However, October marked a break in the trend of growth driven by the pursuit of new markets among Chinese companies. A range of trade indicators started to cool off from the record numbers seen in earlier months, with Shanghai port processing the fewest containers since April. The decline in overall exports in October came as a surprise to almost all forecasters, with the median estimate of those polled by Bloomberg at 2.9%. “October’s surprise drop in exports suggests that China’s external resilience is starting to falter under high tariffs and global trade uncertainty. This highlights the need for Beijing to keep supporting domestic demand and prevent weak spending from dragging on growth,” said Bloomberg. Meantime, China’s raw materials imports broadly weakened in October due to the challenging economic backdrop for demand. Of the major commodities, only crude oil imports showed outright strength.
Day 34 of federal government shutdown sees U.S. flights scaled back… The Federal Aviation Administration ‘s order to scale back U.S. flights nationwide because of the record-long, 34-day-and-counting government shutdown is set to take effect this morning. The 40 airports selected by the FAA span more than two dozen states and include hubs such as Atlanta, Dallas, Denver, Los Angeles and Charlotte, North Carolina, according to the order. In some metropolitan areas, including New York, Houston, Chicago and Washington, multiple airports will be impacted, while the ripple effects could reach smaller airports as well.
The key outside markets today see the U.S. dollar index slightly lower. Crude oil prices are firmer and trading around $60.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.1%.
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’ next upside price objective is to produce a close above solid resistance at $4,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,800.00. First resistance is seen at Thursday’s high of $4,028.70 and then at $4,059.90. First support is seen at Thursday’s low of $3,973.20 and then at this week’s low of $3,935.70. Wyckoff's Market Rating: 6.0.
December silver futures 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 $49.225. Next support is seen at Thursday’s low of $47.41 and then at $47.00. Wyckoff's Market Rating: 6.0.
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