Solid Gold Gains As U.S. Stock Market Wobbles, USDX Sinks
(Kitco News) - Gold pricesaresolidly higher and setting new daily highs in early U.S. trading Friday, on safe-havendemand as U.S. stock indexes are pointed toward lower openings when the NewYork day session begins. The U.S. dollar index is also selling off and hittingits session low, further supporting buying interest in the precious metalsmarkets. December gold futures were last up $9.60 an ounce at $1,224.60. DecemberComex silver was last up $0.082 at $14.345 an ounce.
Globalstock markets were mixed in subdued trading overnight. U.S. stock indexes havebacked well down from last week's highs, to suggest still more selling pressurecould be coming in the near term. Any significant downside price action in theU.S. stock indexes would more strongly support the safe-haven gold market.
Inovernight news, the Euro zone consumer price index for October was reported up0.2% from September and up 2.2%, year-on-year. Those numbers were in line withmarket expectations.
Europeantraders and investors are still focused on the turmoil in the U.K. governmentregarding the U.K's exit from the European Union (Brexit). The uncertainty ofthe matter has pressured European stock markets, the Euro currency and theBritish pound.
Thekey outside markets today find the U.S. dollar index trading slightly lower butstill not far below this week's 1.5-year high. The strong U.S. economy comparedto most other world economies, and the interest rate differentials in thoseeconomies that see U.S. rates significantly higher, are bullish underlyingelements that are likely to continue to provide strong support for thegreenback.
Meantime,Nymex crude oil futures prices are higher on a corrective bounce after hittingand 11-month low of $54.75 earlier this week. The steep slide in oil prices isa bearish element for most of the raw commodity sector, as oil is arguably theleader of that sector.
U.S.economic data due for release Friday includes industrial production andcapacity utilization, the Kansas City Fed manufacturing survey, and Treasuryinternational capital data.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bears have the overall near-term technical advantage amid a fledglingdowntrend in place on the daily bar chart. Bulls' next upside price objectiveis to produce a close in December futures above solid resistance at theNovember high of $1,239.30. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at the September lowof $1,184.30. First resistance is seen at $1,230.00 and then at $1,239.30.First support is seen at the overnight low of $1,213.70 and then at Thursday'slow of $1,207.10. Wyckoff's Market Rating: 3.5
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Decembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $14.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $13.50. Firstresistance is seen at $14.425 and then at $14.50. Next support is seen at$14.00 and then at this week's low of $13.86. Wyckoff's Market Rating: 1.5.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@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.