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Gold and silver prices are higher in early U.S. trading Friday, on corrective bounces and short covering after both markets hit multi-week lows on Thursday. December gold was last up $7.70 at $1,940.40 and December silver was up $0.436 at $23.44.
Asian and European stocks were mostly higher overnight. U.S. stock indexes are pointed to mixed openings when the New York day session begins.
In overnight news, China again eased its monetary policy by cutting a short-term lending rate, one day after lowering the reserve requirement ratio for banks. Some slightly better economic data on Friday prompted this Wall Street Journal headline: "China data show signs of fragile economic recovery."
The key outside markets today see the U.S. dollar index weaker after hitting a six-month high on Thursday. Nymex crude oil prices are slightly higher and trading around $90.50 a barrel. Prices hit a 10-month high overnight. The benchmark U.S. Treasury 10-year note yield is presently fetching 4.33%.
Gold price to hit $5,000 in 3 years, watch the default wave kick off a U.S. recession in Q4 - Michael Lee
U.S. economic data due for release Friday includes the Empire State Manufacturing survey, import and export prices, industrial production and capacity utilization, and the University of Michigan consumer sentiment survey.
Technically, the gold futures bears have the firm overall near-term technical advantage. Prices are trending lower again. Bulls' next upside price objective is to produce a close in December futures above solid resistance at this week's high of $1,954.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at $1,947.50 and then at $1,954.60. First support is seen at today's low of $1,931.20 and then at this week's low of $1,921.70. Wyckoff's Market Rating: 3.0
The silver bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.50. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.75 and then at $24.00. Next support is seen at $23.00 and then at this week's low of $22.555. Wyckoff's Market Rating: 3.0.
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By
Jim Wyckoff
For Kitco News
