Mild price gains for gold as risk aversion upticks
(Kitco News) -Goldprices are modestly higher in early U.S. trading Friday, as some keeneruncertainty has entered the marketplace late this week, to support the safe-havenmetal. However, a slumping crude oil market is worrisome to the raw commoditymarket bulls, including the metals markets, and is limiting the upside in goldand silver. December gold was last up $4.70 at $1,866.10 and December Comex silver was last down $0.06 at $24.83 an ounce.
Globalstock markets were mixed in overnight trading. The U.S. stock indexes are pointedto mixed openings when the New York day session begins. Surging Covid cases inthe U.S. and Europe are back on the front burner of the marketplace late thisweek. Austria will go into a nationwide lockdown Monday. Germany is going intoa partial lockdown. The rise in Covid cases in major economies has promptedworries about slowing global economic growth, and in turn crude oil prices havedropped sharply recently and are at six-week lows. And then there are inflationworries and the potential for “stagflation”-slowing economic growth and risinginflation. However, all of the above have been offset by very upbeat corporateearnings reports for the third quarter that are keeping the S&P 500 andNasdaq stock indexes near this week’s record highs.
TheTurkish lira is sliding again and hit a record low against the U.S. dollarovernight. Turkey’s central bank lowered its interest rates despite risinginflation.
Thekey outside markets today see the U.S. dollar index higher and near this week’s15-month high. Nymex crude oil prices are solidly lower and trading around $77.00a barrel. Oil prices overnight hit a six-week low as it appears the crudemarket has put in a near-term top. There is talk the U.S. and China may taptheir strategic oil reserves to help ease higher gasoline prices. The 10-yearU.S. Treasury note yield is presently fetching 1.555%. For perspective, theGerman 10-year bund yield is presently at -0.328%.
Thereis no major U.S. economic data due for release Friday.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically,December gold futures bulls have the overall near-term technical advantage. Therecent pause is not bearish. A six-week-old uptrend is still in place on thedaily bar chart. Bulls’ next upside price objective is to produce a close abovesolid resistance at $1,900.00. Bears' next near-term downside price objective ispushing futures prices below solid technical support at $1,800.00. First resistanceis seen at Thursday’s high of $1,873.30 and then at this week’s high of $1,879.50.First support is seen at this week’s low of $1,851.00 and then at $1.839.00. Wyckoff'sMarket Rating: 6.5.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
The silver bulls have the overall near-term technicaladvantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls'next upside price objective is closing December futures prices above solid technicalresistance at $26.13 an ounce. The next downside price objective for the bears isclosing prices below solid support at $23.00. First resistance is seen at Thursday’shigh of $25.23 and then at this week’s high of $25.49. Next support is seen at $24.50and then at $24.25. Wyckoff's Market Rating: 6.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.kitco.com