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(Kitco News) – Gold prices are modestly higher in early morning trading on Friday due to increased demand for safe havens amid heightened risk aversion that has been in the market all week. However, better gains for the precious metal are being dampened by a stronger US dollar index and eroding crude oil prices. October gold futures last rose $ 2.30 to $ 1,783.20 and September Comex silver last fell $ 0.06 to $ 23.17 an ounce.
Global equity markets were lower overnight. The US stock indices point to lower opens at the start of the New York day session. The bulls on the US stock index are fading as the indexes head for their worst week since June. The CBOE volatility index has risen to its highest level since May. There was a heightened risk aversion in the game throughout the week. Many commodity futures markets have been hit by risk appetite. The growing coronavirus delta strain is starting to have a bigger impact on global economies. The Federal Reserve said this week it remains concerned about the impact of the pandemic on economies and financial markets. While the Fed is now apparently tending to tighten its monetary policy as early as the fall, some market watchers are now wondering whether the Fed will have to wait to tighten if the virus continues to have a negative impact on companies. Traders and investors look forward to the Federal Reserve’s annual symposium in Jackson Hole, Wyoming next week. More clarity on US monetary policy should emerge from this session.
In the most important foreign markets, the US dollar index rose slightly today and reached another 10.5-month high overnight. Nymex crude oil futures prices are lower, nearing Thursday’s 2.5-month low, trading at $ 63.25 a barrel. Meanwhile, the benchmark 10-year US Treasury bond yield is 1.232%.
No major US economic data will be released on Friday.
Tech-wise, the October gold futures bulls have a slight technical advantage overall and momentum on their side. The bulls’ next target price is to hit a close above the solid resistance at $ 1,800.00. Bears’ next short-term target price is to push futures prices below solid technical support at $ 1,700.00. Initial resistance is seen at this week’s high at $ 1,795.00 and then at $ 1,800.00. Initial support is seen at this week’s low of $ 1,769.80 and then at $ 1,760.00. Wyckoff’s market valuation: 5.5.
The silver bears have solid overall short term technical advantage. Prices are in a three month old downtrend on the daily bar chart. The silver bulls’ next price target is the September futures closing price above solid technical resistance at $ 25.00 an ounce. The next downside target for the bears is to close below solid support at the weekly low of $ 22.295. Initial resistance is seen at Thursday’s high of $ 23.515 and then $ 24.00. The next support is shown at $ 23.00 and then at $ 22.97. Wyckoff’s market valuation: 2.5.
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