(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, with silver futures sharply up and hitting a new record high. Chart-based buying is featured in both metals as their near-term technical postures have become more bullish this week. February gold was last up $29.60 at $4,231.90. March silver prices were up $1.763 at $55.37.
CME Group data center overheats, halting futures trading and disrupting global markets and driving some short-term safe-haven demand for gold, silver. Trading of futures and options on the Chicago Mercantile Exchange was halted overnight/early today by a data-center fault, causing hours of disruption to markets across equities, foreign exchange, bonds and commodities. Bloomberg reported the malfunction was caused by cooling system problems at a data center in the Chicago area, according to facility operator CyrusOne. Engineering teams have restarted several chillers and deployed temporary cooling equipment, a spokesperson said. CNBC reported all CME Group futures markets are set to reopen soon. The halt was longer than a similar, hours-long outage due to a technical error back in 2019 and underscores the reach of CME Group Inc. and its Globex electronic trading platform. It triggered widespread frustration as market participants contemplated the prospect of a lost trading session. “It’s a bit like flying dark,” said Thomas Helaine, head of equity sales at TP ICAP Europe in Paris. “When you’re trading cash equity like us, U.S. futures give you an indication of where the market is going before the open. I can only imagine how complicated it must be for derivatives desks,” he said and as reported by Bloomberg.
Putin says no final peace plan draft yet. Russian President Vladimir Putin said on Thursday that President Trump’s proposals for ending the war in Ukraine could be the basis for future agreements. Putin said that according to his knowledge, the 28-point plan was rearranged into four parts by Ukraine and the U.S. during talks in Geneva, which can be the ground for talks. Putin lauded U.S. presidential envoy Steve Witkoff, saying he is intelligent and polite, and that Witkoff is coming to Moscow to carry out negotiations with Russia under the order of President Trump.
Nymex crude oil prices headed for fourth month-on-month loss in a row as OPEC+ meets this weekend. Oil headed for a fourth monthly loss on this last trading day of November, as traders look ahead to an OPEC+ meeting this weekend and gauge how a potential Ukraine peace deal may impact an oversupplied market. Brent steadied above $63 a barrel, after a modest advance on Thursday. Nymex crude oil was trading around $59 a barrel. OPEC+ nations meet virtually on Sunday and will probably stick with a plan to pause output increases in early 2026, delegates said. With that decision locked in, a key focus may be a long-term review of members’ capacity, reports Bloomberg. Brent oil has fallen 15% this year, with prices hurt by expectations for a global glut after OPEC+ restarted capacity, while drillers outside the alliance also added supplies. On Ukraine, Russian President Vladimir Putin said that President Trump’s proposals for ending the war could be the basis for future agreements and expressed an openness to talks, though sticking points that led to stalemates in previous rounds remain. U.S. presidential envoy Steve Witkoff is expected to visit Moscow next week. An end to the conflict would have significant ramifications for the oil market. Russia is one of the world’s leading producers and its flows are subject to heavy Western sanctions. Any easing of curbs following a deal could unleash restricted supplies to buyers such as China, India and Turkey.
The key outside markets today see the U.S. dollar index slightly firmer. Crude oil prices are firmer and trading around $59.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.00%.
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, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at the November high of $4,285.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at $4,250.00 and then at $4,285.60. First support is seen at the overnight low of $4,174.60 and then at $4,150.00. Wyckoff's Market Rating: 7.0.
March silver futures bulls have the solid overall near-term technical advantage. Their next upside price objective is closing prices above solid technical resistance at the record high of $55.06. The next downside price objective for the bears is closing prices below solid support at $50.00. First resistance is seen at the record high of $55.06 and then at $56.00. Next support is seen at the overnight low of $53.22 and then at $53.00. Wyckoff's Market Rating: 8.5.
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