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(Kitco News) – Gold prices were trading unchanged in early US trading on Friday. A weaker US dollar index was offset by crude oil prices falling to five-week lows overnight. US bond yields rose slightly late this week, making it slightly bearish for safe-haven metals. Precious metals traders are looking for a spark of news to ignite some big price movements. December gold was up $0.40 at $1,763.40 and December silver was up $0.22 at $21.195.
Global stock markets were mixed overnight. US stock indices move to higher opens as the New York day session begins. Trader and investor sentiments in the US were somewhat upbeat later this week following a better-than-expected US retail sales report for October released on Wednesday. However, enthusiasm was dampened Thursday by hawkish rhetoric coming from US Federal Reserve officials, who apparently said the US economy would have to sink into recession for a while to fully tame problematic inflation.
Major outside markets see the US dollar index weaker today. Nymex crude oil prices fell, hitting a five-week low overnight and trading at around $81.25 a barrel. The yield on the benchmark US 10-year Treasury note is currently 3.799%.
US economic data to be released on Friday includes existing home sales and key economic indicators.
Technically, gold futures bulls have a slight overall short-term technical advantage amid a fresh price rally on the daily bar chart. The bulls’ next upside price objective is to produce above solid resistance at $1,800.00. The bears’ next near-term downward price objective is pushing futures prices below solid technical support from last week’s low of $1,667.10. First resistance is seen at Thursday’s high of $1,777.60 and then this week’s high of $1,791.80. First support is seen at this week’s low of $1,755.80 and then at $1,750.00. Wyckoff’s Market Rating: 5.5.
Silver bulls have the overall near term technical advantage. There is an unstable, 2.5-month-old uptrend on the daily bar chart. The next upside price objective for silver bulls is closing prices above solid technical resistance at this week’s high of $22.38. The next downside price objective for bears is closing prices below solid support at $20.00. First resistance is seen at Thursday’s high of $21.535 and then at $22.00. The next support is seen at $21.00 and then this week’s low at $20.785. Wyckoff’s Market Rating: 6.0.
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