Gold price slightly up on late-week pause

(Kitco News, Aug. 9th, 2024) – Gold prices are just slightly higher and silver slightly lower in early U.S. trading Friday. The markets are pausing as traders await the next significant fundamental event to drive daily price action. That event could be a geopolitical development over the weekend, or U.S. inflation data out next week, or both. A bigger move in the U.S. stock market today would also likely move the gold and silver markets. December gold was last up $2.50 at $2,465.80. September silver was down $0.046 at $27.56.

Asian and European stock indexes were mixed but mostly firmer overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. The U.S. stock indexes saw strong rallies Thursday, with the S&P 500 having its best day since 2022. Some upbeat U.S. economic data this week has somewhat eased U.S. economic recession fears.

In overnight news, China’s inflation data was a mixed bag. Its July consumer price index rose 0.5%, year-on-year, which was slightly above market expectations. Meantime, China’s producer price index fell 0.8% in July, year-on-year, marking 22 straight months of a decline.

There are lingering concerns regarding a flare-up in Middle East military action coming soon. Israel has been braced for a major attack from Iran and its proxies after Israel recently assassinated key military officials from Hamas and Hezbollah.

The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are up a bit and are trading around $76.50 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.967%.

There is no major U.S. economic data due out Friday.

Technically, December gold bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,537.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at $2,475.00 and then at $2,500.00. First support is seen at $2,450.00 and then at $2,500.00.

September silver futures bears have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at last week’s high of $39.355. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at $28.00 and then at $28.50. Next support is seen at $27.00 and then at this week’s low of $26.505

Posted by :

Jack Dempsey.  President

401 Gold Consultants LLC

jdemp2003@gmail.com