Gold sees price pressure on more profit taking
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(Kitco News) – Gold prices are slightly lower at the start of the US trading session on Friday, due to greater profit taking by short-term futures traders, as a result recent earnings. The recent massive selloff in the crude oil market and the strong US dollar index are also negative for the metals markets. December gold was down $ 9.50 to $ 1,842.10 and December Comex silver was down $ 0.001 to $ 24.78 an ounce.
Global stock markets were mixed in overnight trading. US stock indices show higher openings when the New York session begins. Trading week in the United States could be quieter as the Thanksgiving holiday falls on Thursday, with an abbreviated trading session on Friday being historically one of the busiest days of the year. European traders and investors remain concerned about Covid lockdowns as infections in Europe and Asia are on the rise.
The market event of the week could be President Biden’s choice for Federal Reserve chairman. Jerome Powell’s term expires in February. Reports indicate that Powell and Fed Governor Lael Brainard are Biden’s top candidates. Biden could announce his choice Tuesday during a speech on the US economy.
Major foreign markets today see the US dollar index slightly higher and not far from last week’s 15-month high. Nymex crude oil prices are up slightly and trading around $ 76.00 per barrel. Oil prices hit a six week low overnight and it looks like a market high is in place. The yield on 10-year US Treasuries is currently 1.56%.
US economic data due for release Monday includes the Chicago Fed’s national activity index and existing home sales.
Technically, the bulls in December gold futures have the overall short-term technical advantage. A seven week old bullish trend is in place on the daily bar chart. The Bulls’ next bullish price target is to produce a close above solid resistance at the November high of $ 1,879.50. The bears’ next short term bearish price target is pushing futures prices below the strong technical support at $ 1,800.00. First resistance is seen at the overnight high of $ 1,850.40 and then at $ 1,860.00. First support is seen at the overnight low of $ 1,838.30 and then at $ 1,830.00. Wyckoff Market Score: 6.5
Silver bulls have the overall technical advantage in the short term. Prices are in a seven week uptrend on the daily bar chart. The next bullish price target for Silver Bulls is to close December futures prices above strong technical resistance at $ 26.13 an ounce. The next bearish price target for bears is to close prices below the solid support at $ 23.00. The first resistance is seen at $ 25.00 and then at $ 25.25. Next support is seen at the overnight low of $ 24.55 and then at $ 24.25. Wyckoff Market Rating: 6.0.
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