By Jim Wyckoff, Kitco News
(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, on safe-haven demand amid geopolitics that remain near the front burner of the marketplace. A slumping U.S. dollar index this week and a down-tick in U.S. Treasury yields this week are also working in favor of the precious metals market bulls. February gold was last up $20.40 at $2,685.20 and March silver was up $0.759 at $31.315.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Today, which is the last trading day of the month, is typically one of the lightest-volume trading days of the year, as many U.S. market participants are still out for the Thanksgiving holiday that was Thursday. The U.S. stock market closes early. The S&P 500 stock index is on course for its best month since last February. Meantime, Chinese stocks rallied as traders hope for more economic support at a key economic/monetary policy meeting by Chinese officials in December.
Gold and silver prices are posting good gains on better safe-haven demand. Russian President Vladimir Putin has warned of possible strikes on "decision-making centers" in Ukraine’s capital Kyiv, with new ballistic missiles that he said could turn the city into dust. Also, Russia’s defense minister is in North Korea to meet with his counterpart, “stoking concerns over deepening military cooperation between Pyongyang and Moscow,” said a Bloomberg report. A Dow Jones Newswires headline today reads: “Russia’s war economy shows new cracks after the ruble plunges.” And in the Middle East, Israel and Lebanon have already accused each other of violating a cease-fire agreement that just went into effect this week.
The key outside markets today see the U.S. dollar index a bit lower on a continued corrective pullback that has begun to now produce near-term technical damage. The USDX is recording its biggest weekly loss in three months as investors rethink the Trump trade. Meantime, Nymex crude oil futures prices are near steady and trading around $68.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.209%.
There is no major U.S. economic data due for release Friday.
Technically, February gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,748.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at the overnight high of $2,690.50 and then at $2,700.00. First support is seen at $2,675.00 and then at $2,650.00. Wyckoff's Market Rating: 6.0.
March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $31.50 and then at $32.00. Next support is seen at $31.00 and then at $30.50. Wyckoff's Market Rating: 5.0.
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