Gold Prices Firmer As Uncertain Weekend Looms

(Kitco News) - Gold prices aremodestly up in early U.S. trading Friday, supported on some safe-haven buyinginterest in a nervous trading environment heading into the weekend. December goldfutures were last up $1.80 an ounce at $1,231.90. December Comex silver waslast up $0.121 at $14.725 an ounce.

Don'tbe surprised if trader and investor anxiety upticks as the trading session progressesFriday, heading into a very uncertain weekend. This is mainly due to pendingresults of an investigation into the disappearance of a Saudi journalist thatcould be a murder and could involve the Saudi Arabian government. The marketswere jolted on Thursday when U.S. Secretary Mnuchin backed out of a high-levelbusiness conference being held in Saudi Arabia.

Also,the Euro currency has been rattled again this week by recurring trader concernsregarding Italy falling into line with European Union rules on country'sbudgets. There is talk major credit rating agencies could downgrade Italy'scredit rating.

Globalstock markets were mostly firmer overnight. China's stock market rallied afterthe Chinese government pledged to keep its economy on track and expressedconfidence in future growth. This comes after the Chinese stock market droppedto a multi-year low Thursday and the Chinese yuan dropped to a 21-month lowagainst the U.S. dollar. U.S. stock indexes are pointed toward firmer openingswhen the New York day session begins, on modest corrective bounces after solidlosses suffered on Thursday.

Inovernight news, China's gross domestic product grew by 6.5% in the thirdquarter, year-on-year. That was down from the 6.7% growth rate in the secondquarter. A rate of 6.6% was expected for the third quarter. The third-quarterfigure was the slowest economic growth pace for China in several years.

Thekey outside markets today find the U.S. dollar index slightly higher. Meantime,November Nymex crude oil prices are modestly up and are trading below $69.00 abarrel. Still, oil prices hit a four-week low on Thursday amid concerns aboutworldwide economic growth that could crimp demand for crude.

U.S.economic data due for release Friday is light and includes existing home sales.

Technically,gold bulls have the near-term technical advantage. This week's pause is notbearish. Bulls' next upside price objective is to produce a close in Decemberfutures above solid resistance at $1,250.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at $1,200.00.First resistance is seen at this week's high of $1,236.90 and then at $1,240.00.First support is seen at this week's low of $1,220.40 and then at $1,215.00.Wyckoff's Market Rating: 6.0

Decembersilver futures bears still have the overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Septemberlow of $13.965. First resistance is seen at this week's high of $14.88 and thenat the October high of $14.95. Next support is seen at the overnight low of $14.58and then at this week's low of $14.47. Wyckoff's Market Rating: 3.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views 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 accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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