Demand For Safe Havens Drives Gold And Silver Price Rises

(Kitco News) – Gold prices are rising in early U.S. trading on Friday on safe-haven buying as tensions rise in the Middle East and head into an uncertain weekend. December gold prices hit a 2.5-month high overnight, approaching $2,000.00 and were last up $8.40 at $1,989.00. December silver prices were last up $0.244 at $23.275.

Rising tensions in the Middle East are weakening traders’ and investors’ appetite for risk late this week and heading into the weekend. Rising bond yields are also slowing stock market bulls this week. Reports overnight said a US warship had to intercept missiles fired at it from Yemen.

Asian and European stocks were mostly in the red overnight. At the start of the New York session, US stock indices are pointing to slightly weaker openings.

The highlight of the US market on Thursday was Federal Reserve Chairman Jerome Powell’s afternoon speech to the Economic Club of New York. Powell said inflation in the U.S. was still too high and slower economic growth would likely be needed to bring it down. His comments were nothing new and did little to move market sentiment.

The main external markets see an almost stable US dollar index today. Crude oil prices on Nymex are higher, trading at around $90.50 per barrel. The yield on the benchmark 10-year U.S. Treasury note is currently at 4.948%, after briefly rising above 5.0% on Thursday.

No important US economic data will be released on Friday.

Technically, gold futures bulls have the technical advantage and momentum in the short term. On the daily bar chart, prices are trending upwards. Bulls’ next price objective is to close December futures above solid resistance at $2,000.00. The bears’ next short-term downside price objective is to push futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high $1,997.60 and then at $2,000.00. The first support lies at $1,980.20 and then at $1,968.90. Wyckoff’s market rating: 6.0

Overall, the silver bulls have a slight short-term technical advantage. On the daily bar chart, prices are trending upwards. Silver bulls’ next upside price objective is for December futures prices to close above solid technical resistance at $24.00. The next downside price objective for the bears is to close below solid support at $22.00. First resistance is seen at the weekly high of $23.49 and then at $23.80. The next support is seen at $23.00 and then Thursday’s low of $22.785. Wyckoff’s market rating: 5.5.

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