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(Kitco News) – Gold and silver prices edged up at the start of the U.S. trading session on Friday, following tentative corrective rebounds after the steep losses suffered on Thursday, when the prices of gold hit a four week low and silver hit a five week low. The short-term chart positions for both metals turned more bearish this week, suggesting downward pressure on prices in the short term. October gold futures last rose $ 3.50 to $ 1,758.10. December’s Comex Silver was up $ 0.161 to $ 22.95 an ounce.
Global equity markets have been mixed in overnight trading, with European indices mostly weaker and Asian indices mostly firmer. US stock indices show slightly lower openings when the New York day session begins. It’s been a hectic trading week for U.S. stock indexes, and that could continue to be the case until the middle of next week, when the Federal Reserve’s Open Market Committee (FOMC) concludes its meeting of Monetary Policy.
Large Chinese real estate developer Evergrande saw its stock price drop again overnight, which some see as a sign of larger underlying problems with the Chinese economy. China’s central bank pumped liquidity into its financial system on Friday, the first such move in seven months. The move was aimed at calming nervous Chinese markets. If this situation worsens, the gold and silver markets could see a demand for safe haven.
In other overnight news, the Eurozone Consumer Price Index for August was reported up 0.4% from July and up 3.0%, year-on-year . These numbers were very much in line with market expectations and tame on the inflation front.
The main foreign markets are now seeing the US dollar index weaken. Nymex crude oil futures prices are also lower, trading around $ 72.15 per barrel. Meanwhile, the yield on the benchmark 10-year US Treasury bond currently stands at 1.338%.
US economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.
Technically, October gold futures have the overall short-term technical advantage. The Bulls’ next bullish price target is to produce a close above the solid resistance at $ 1,800.00. Bears’ next short-term bearish price target is to push futures prices below strong technical support at $ 1,700.00. First resistance is seen at the overnight high of $ 1,765.40 and then at $ 1,775.00. First support is seen at today’s low of $ 1,750.70 and then the week’s low of $ 1,743.50. Wyckoff Market Score: 4.0
The Silver Bears have a strong overall technical advantage in the short term and have gained more power this week. The next bullish price target for Silver Bulls is to close December futures prices above strong technical resistance at $ 24.00 an ounce. The next bearish price target for bears is to close prices below solid support at the August low of $ 22.35. First resistance is seen at the day’s high at $ 23.13 and then at $ 23.50. Next support is seen at today’s low of $ 22.81 and then this week’s low of $ 22.585. Wyckoff Market Rating: 2.0.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.