Comex gold futures prices are trading near steady levels Friday morning, amid generally quiet markets. Investor interest in markets is somewhat diminishing as the holidays and the end of the year approach. February Comex gold last traded down $0.30 at $1,370.70 an ounce. Spot gold last traded up $0.20 at $1,370.00.
There are potential market-moving fundamentals for the precious metals on the back burner at present, and which could flare up at any time. The North Korea-South Korea stare-down continues, with North Korea now threatening to attack if South Korea conducts military exercises. Traders are awaiting fresh news from a European Union economic summit in Brussels. There has been talk of the EU creating Euro bonds, which had been somewhat supportive for the Euro currency. Any EU pronouncements on its debt problems will be closely scrutinized by the market place. Both the Korean and EU situations and any new developments are potentially gold-market bullish.
The U.S. dollar index is trading weaker Friday morning. The dollar index bulls did gain some fresh upside technical momentum on Wednesday, but the index is now giving back some of those price gains as the week winds down. U.S. Treasury yields are at six-month highs, which is supporting the greenback and pulling some investment demand away from the precious metals.
U.S. economic data due for release Friday includes the leading economic indicators index.
The London A.M. gold fixing was $1,374.75 versus the previous P.M. fixing of $1,363.00.
Technically, February Comex gold futures bulls still have the overall near-term and longer-term technical advantage, but they have faded as the week has progressed. A bearish weekly low close on Friday would provide the bears with fresh near-term technical momentum and would also be an early clue that a near-term market top is in place in gold. A 4.5-month-old uptrend is still in place on the daily bar chart, but the bulls need to show power soon to keep the uptrend in place.
Bulls’ next near-term upside technical objective is to produce a close above solid technical resistance at this week’s high of $1,408.90. Bears’ next near-term downside price objective is closing prices below solid technical support at $1,350.00. First resistance is seen at the overnight high of $1,378.50 and then at Thursday’s high of $1,387.30. Support is seen at this week’s low of $1,361.60 and then at $1,350.00.
March silver futures last traded down 1.2 cents at $28.77 an ounce Friday. The silver bulls still have the overall near-term technical advantage, but are fading just a bit. Bulls do not want to see a bearish weekly low close on Friday.
Silver prices are still in a 4.5-month-old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at $28.00. Bulls’ next upside price objective is producing a close above solid technical resistance at this week’s high of $29.985 an ounce. First resistance is seen at $29.00 and then at the overnight high of $29.37. Next support is seen at this week’s low of $28.35 and then at $28.00.