Price pressure on gold, silver amid routine profit taking

(Kitco News, Fri. Oct. 25th ,2024)  – Gold and silver prices are weaker in early U.S. trading Friday, on some normal profit taking from the shorter-term futures traders after recent good gains. Bulls remind that no markets’ prices go straight up, and price “corrections” in uptrends are actually healthy for the uptrends to continue. Don’t be surprised to see bullish traders step in to “buy the dips” heading into the weekend. December gold was last down $12.00 at $2,736.90 and December silver was down $0.33 at $33.465.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins.

Gold market bulls were a bit disappointed with the BRICS summit in Russia this week. There was speculation of a possible BRICS currency being announced at meeting in Kazan, Russia. However, Russian President Vladimir Putin was quoted as saying Russia is not seeking to reject the U.S. dollar, but rather to seek alternative methods of payment. The idea of a BRICS currency has garnered interest in recent months over the possibility that it could be partially backed by gold. The outcome of the Kazan summit appeared to place more emphasis on a common cross-border payments system, rather than a new BRICs currency, said a Trade Nation email dispatch. Said Broker SP Angel this morning: “Emphasis on de-dollarization was consistent. However, gold bulls were likely disappointed by the lack of emphasis on the metal.”

The key outside markets today see the U.S. dollar index near steady. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.184%. Crude oil prices are firmer and trading around $70.75 a barrel.

U.S. economic data due for release Friday includes durable goods orders and the University of Michigan consumer sentiment survey.

Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,650.00. First resistance is seen at the $2,750.00 and then at the contract high of $2,772.60. First support is seen at the overnight low of $2,729.10 and then at this week’s low of $2,722.10.

December silver futures bulls have the solid overall near-term technical advantage. Prices are in an accelerating 2.5-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at $34.00 and then at $34.50. Next support is seen at the overnight low of $33.26 and then at $33.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com