(Kitco News, Thurs. Oct. 20th,2022) – Gold and silver prices are higher in early U.S. trading Thursday, on modest upside corrections following recent selling pressure. A weaker U.S. dollar index and higher crude oil prices today are working in favor of the metals market bulls. December gold was last up $7.60 at $1,641.80 and December silver was up $0.296 at $18.66.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed to mixed to weaker openings when the New York day session begins. Risk appetite is not robust at present, but neither is risk aversion. Traders and investors are trying to determine if the U.S. stock indexes have put in major market bottoms, or have just seen upside price corrections in downtrends that are still in place on the daily bar charts.
In overnight news, the Japanese yen hit a 32-year low against the U.S. dollar. Japan’s central bank refuses to raise interest rates, while other major central banks are raising rates. There is speculation the Bank of Japan will have to step and sell U.S. dollars to support the yen again.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are higher and trading around $87.50 a barrel. The U.S. Treasury 10-year note yield is presently fetching 4.13%.
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Inflation remains a threat around the world, central bank tightening will keep a lid on gold for now |
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, existing home sales and leading economic indicators.
Technically, the December gold futures bears have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,700.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at $1,650.00 and then at Wednesday’s high of $1,659.80. First support is seen at the overnight low of $1,626.30 and then at $1,622.20.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
September silver futures bears have the solid overall near-term technical advantage and have momentum. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the October high of $21.31. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at $19.00 and then at $19.29. Next support is seen at the overnight low of $18.15 and then at $18.00.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com