After a significant drop yesterday, gold and silver prices in the U.S. morning session on Thursday rose steadily, benefiting from daily bullish external market factors, including a weaker U.S. Dollar Index, stronger crude oil prices, and a decline in U.S. Treasury yields. Safe-haven demand remains the primary underlying support for precious metals and has kept a solid floor under prices. December gold rose by $19.70 to $2,749.10, and December silver increased by $0.406 to $34.245.
Asian and European stocks fluctuated overnight. At the New York opening, U.S. stock indices mostly opened higher.
On this day in 1929, a massive sell-off at the opening of the New York Stock Exchange led to chaos as brokers could not keep up with trade requests. Although the market recovered some ground by the end of the day, "Black Thursday" marked the beginning of the 1929 Wall Street Crash.
Today, the primary external market sees a decline in the U.S. Dollar Index. The benchmark 10-year U.S. Treasury yield is currently at 4.20%. Crude oil prices are strong, trading around $71.50 per barrel.
U.S. economic data released on Thursday includes the weekly unemployment benefit claims report, the Chicago Federal Reserve Bank National Activity Index, the U.S. manufacturing and services Purchasing Managers' Index, new home sales, and the Kansas City Federal Reserve Bank manufacturing survey.
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Technical Analysis for Gold and Silver
Technically, December gold bulls have a strong overall short-term technical advantage. The next upside price objective for the bulls is to close above solid resistance at $2,800.00. The next near-term downside price objective for the bears is to push futures prices below solid technical support at $2,650.00. First resistance is seen at the contract high of $2,772.60, followed by $2,800.00. The first support is at the overnight low of $2,728.70, then the weekly low of $2,722.10.
December silver futures bulls have a solid overall short-term technical advantage. On the daily bar chart, prices are in a 2.5-month accelerating uptrend. The next upside price objective for the silver bulls is to close above solid technical resistance at $37.50. The next downside price objective for the bears is to close below solid support at $32.00. First resistance is seen at the overnight high of $34.48, followed by the weekly high of $35.07. The next support is expected at $34.00, then the weekly low of $33.61.