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(Wallace Refiners) – Gold and silver futures prices are moderately higher in early U.S. trading Friday, as some safe-haven demand has finally surfaced just days before the U.S. presidential elections. Much of this week the precious metals had been hit by a stronger U.S. dollar index. December gold futures were last up $11.60 at $1,879.60 and December Comex silver was last up $0.335 at $23.695 an ounce.
Global stock markets were mostly down overnight. U.S. stock indexes are set to open the New York day session solidly lower. It’s a risk-off trading day Friday, on this last trading day of the week and of the month. Some mostly as-expected but still uninspiring high-technology stocks’ earnings reports this week, rising Covid-19 infections in major industrialized countries that are prompting new restrictions on businesses, and the upcoming U.S. elections have traders and investors pulling in their horns today. Risk aversion could become keener on Monday and Tuesday, as next Tuesday’s U.S. elections will be the major focus of the global marketplace next week. Reports said Wal Mart will pull all guns off their shelves next week, just in case civil unrest becomes extreme. Several global health officials have told the public in the Northern Hemisphere to expect a “dark winter,” with other officials warning Covid’s grip on the world, including its damaging economic implications, won’t abate until 2022.
In overnight news, Germany, the workhorse of the European Union, saw its GDP rise a better-than-expected 8.2% in the third quarter from the second quarter, but still down 4.3%, year-on-year.
The important outside markets early today see the U.S. dollar index a bit weaker on a mild corrective pullback after strong gains this week that pushed the index to a four-week high on Thursday. Nymex crude oil prices are slightly lower early today and hit a 4.5-month low on Thursday, presently trading around $36.00 a barrel. The breakdown in crude oil prices this week, which produced serious near-term technical damage on the charts, is a significantly bearish omen for the entire raw commodity sector. The yield on the benchmark U.S. 10-year Treasury note is 0.82% today.
U.S. economic data due for release Friday includes personal income and outlays, the employment cost index, the ISM Chicago business survey, and the University of Michigan consumer sentiment survey.
Technically, the December gold futures bulls have the overall near-term technical advantage but are fading. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,939.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at Thursday’s high of $1,885.10 and then at $1,900.00. First support is seen at this week’s low of $1,859.20 and then at $1,851.00. Wyckoff’s Market Rating: 6.0
December silver futures bulls still have the overall near-term technical advantage but a price uptrend on the daily bar chart has been negated and bulls need to show more power soon to avoid serious near-term technical damage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the October high of $25.71 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at the Thursday’s high of $23.65 and then at $24.00. Next support is seen at this week’s low of $22.625 and then at $22.25. Wyckoff’s Market Rating: 6.0.
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