Gold futures prices are sharply down and hit a five-month low in early U.S. trading Friday. Silver prices hit a two-month low in early U.S. trading. After an overnight session of uneventful and near-steady price action, the New York session began with strong selling pressure on both metals. Traders and investors are exhibiting much keener risk appetites this week, as seen by rallying global equity markets that saw U.S. stock indexes hit record highs. That’s bearish for the safe-haven metals. December gold futures were last down $30.40 at $1,772.80 and December Comex silver was last down $0.937 at $22.425 an ounce.
Gold futures bears on Friday morning appeared to be targeting what was this week’s low of $1.797.10, basis December Comex futures, “gunning for sell stops” that rested just below that technical support level. When that key near-term level was breached the bottom did indeed fall out of the gold futures market. Many times, big futures players will try to hit a quiet market by surprise, when they believe volume is thin, such as today. It appeared to work for gold and silver market bears today.
Global stock markets were also mostly flat overnight, amid no major news developments the past 48 hours. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Following the U.S. Thanksgiving holiday on Thursday, Friday is typically one of the slowest U.S. trading days of the year for most markets. The NYSE and Nasdaq stock markets close early today.
Metals traders on Friday morning could be focusing on comments made from President Trump just recently that indicate he will honor the U.S. electoral college certifying the presidential election in mid-December. Trump also made remarks about Biden being the next president.
The U.S. dollar index is slightly lower early today. The other important outside market sees January Nymex crude oil futures prices weaker and trading around $45.40 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.86%.
There is no major U.S. economic data due for release Friday.
Technically, the December gold futures bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at this week’s high of $1,875.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,800.00 and then at the overnight high of $1,817.00. First support is seen at $1,750.00 and then at $1,725.00. Wyckoff’s Market Rating: 4.0
December silver futures bulls have lost their slight overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at $23.00 and then at the overnight high of $23.505. Next support is seen at $22.00 and then at $21.81. Wyckoff’s Market Rating: 5.0.