Gold and silver see a little price weakness as global stocks gain

New York (Sept 11)  Gold and silver prices are moderately lower in early U.S. trading Friday. Risk appetite has up-ticked a bit late this week, evidenced by global equities markets that are mostly up to end the trading week. Still, don’t be surprised to see the gold and silver bulls step in to buy this latest dip in prices. October gold futures were last down $11.20 at $1,944.80 and December Comex silver was last down $0.341 at $26.94 an ounce.

Global stock markets were mixed but mostly up overnight, with Asian shares mostly up and European shares mostly down. U.S. stock indexes are set for higher openings when the New York day session begins. The U.S. stock market has become a bit wobbly recently, after hitting record highs several times in August. Daily stock market volatility has picked up, but not to the point of really spooking the marketplace. Still, it’s early September and history shows that the stock and financial markets have a few more weeks of potential rough waters, and that could be extended by a few weeks this year with the U.S. elections in early November.

A feature in the marketplace this week is the slumping value of the British pound versus the U.S. dollar, falling to a six-week low amid deteriorating relations between the United Kingdom and the European Union.

The U.S. economic data point of the day is the consumer price index for August, which is seen up 0.3% from July and up 1.2%, year-on-year.

The important outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are near steady and trading around $37.25. The yield on the U.S. Treasury 10-year note is trading around 0.68% today.

U.S. economic data due for release Friday includes the consumer price index, real earnings and the monthly Treasury budget statement.

Technically, the gold bulls still have the firm overall near-term technical advantage, amid recent choppy and sideways trading. Prices are still in an overall near-term uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,992.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at this week’s high of $1,966.60 and then at $1,972.40. First support is seen at $1,925.00 and then at this week’s low of $1,904.60.

However, by 09;00am EST spot gold bounced up $5 to $1,946, while spot silver eeked up 12 cents to $26.81.

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