(Kitco News, Thurs. Oct. 12th, 2023) – Gold and silver prices are higher in early U.S. trading Thursday, on more modest safe-haven demand that is not strong, but has been steady this week. There are growing concerns the Israel-Hamas war will escalate in the near term. Ideas of a less-hawkish Federal Reserve are also a bullish element for the metals markets. December gold was last up $8.40 at $1,895.70 and December silver was up $0.182 at $22.315.
Focus today is on a key U.S. inflation report: the consumer price index report for September, which is seen coming in at up 4.1%, year-on-year, and compares to the 4.3% rise in the August report. A hotter-than-expected CPI reading today could dent bullish enthusiasm in the precious metals markets. Still, the safe-haven bid amid the elevated Middle East tensions is likely to at least keep a floor under gold and silver prices.
Asian and European stocks were mostly higher overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins. The U.S. stock indexes this week are “climbing a wall of worry” as the turmoil in the Middle East is on the front burner of the market place.
The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil prices are higher and trading around $84.25 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching 4.565%. Treasury yields have down-ticked this week on flight-to-quality buying amid the Middle East turmoil.
Other U.S. economic data due for release Wednesday includes the weekly jobless claims report, real earnings, the weekly DOE liquid energy stocks report and the monthly Treasury budget statement.
Gold Price in US Dollars
Oct 12, 2023 12:08 NY Time
Bid
1,872.70
-1.30 (-0.07%)
Ask
1,874.00
Technically, the gold futures bears still have the overall near-term technical advantage. However, last Friday’s “outside day” up on the daily chart and then Monday’s gap-higher price move are early clues that a market bottom is in place. Prices are still in a four-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,900.00 and then at $1,913.60. First support is seen at the overnight low of $1,886.80 and then at Wednesday’s low of $1,871.70. Wyckoff’s Market Rating: 3.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
The silver bears still have the overall near-term technical advantage. Prices are still in a downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at the October low of $20.85. First resistance is seen at $22.555 and then at $23.00. Next support is seen at $22.00 and then at this week’s low of $21.705.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com