Safe-haven demand fueling price gains in gold, silver - Kitco NEWS

(Kitco News) - Gold are higher in early U.S. trading Friday, on safe-haven buying as tensions in the Middle East are on the rise heading into an uncertain weekend. December gold prices hit a 2.5-month high overnight, are closing in on $2,000.00, and were last up $8.40 at $1,989.00. December silver was last up $0.244 at $23.275.

Heightened tensions in the Middle East are sapping trader and investor risk appetite late this week and heading into the weekend. Rising bond yields are also squelching the equities market bulls this week. Reports overnight said a U.S. warship had to intercept missiles fired at it from Yemen.

Asian and European stocks were mostly lower overnight. U.S. stock indexes are pointed to slightly weaker openings when the New York day session begins.

The U.S. marketplace highlight of the day Thursday was Federal Reserve Chairman Jerome Powell's speech to the Economic Club of New York in the afternoon. Powell said U.S. inflation is still too high and slower economic growth is likely needed to bring it down. His comments were nothing new and did little to move the needle on the markets.

The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are higher and trading around $90.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note yield is presently fetching 4.948% after briefly pushing above 5.0% on Thursday.

There is no major U.S. economic data due for release Friday.

Technically, the gold futures bulls have the near-term technical advantage and have momentum. Prices are trending higher on the daily bar chart. Bulls' next upside price objective is to produce a close in December futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,997.60 and then at $2,000.00. First support is seen at $1,980.20 and then at $1,968.90. Wyckoff's Market Rating: 6.0

The silver bulls have the slight overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at this week's high of $23.49 and then at $23.80. Next support is seen at $23.00 and then at Thursday's low of $22.785. Wyckoff's Market Rating: 5.5.

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