Increase in demand for safe haven prompts rise in gold and silver prices

(Kitco News) – Early Friday trading witnessed a rise in gold prices as the demand for safe-haven assets continued to increase, fueled by escalating tensions in the Middle East before an uncertain weekend. Gold prices for December reached a 2.5-month peak overnight, closing at $2,000.00, and are currently up $8.40 at $1,989.00. December silver has also risen, with an increase of $0.244, bringing it to $23.275.

The heightened tensions in the Middle East have dampened the risk appetite of traders and investors for the coming weekend. This, combined with the rising bond yields this week, is slowing the equity market rally. Reports overnight indicate that a US warship had to intercept missiles fired at it from Yemen.

Overnight, both Asian and European stocks experienced a mostly negative trend. US stock indices are expected to show a slightly weaker start once the New York day session commences.

The highlight of Thursday’s US market was the speech by Federal Reserve Chairman Jerome Powell at the Economic Club of New York in the afternoon. Powell indicated that US inflation remains significantly high and emphasized the need for slow economic growth in order to decrease it. Despite receiving attention, Powell’s comments did little to cause a stir in the markets.

In significant external markets, the US dollar index remains relatively stable. Nymex crude oil prices have risen and are currently trading at around $90.50 per barrel. The yield on the benchmark US Treasury 10-year note is currently at 4.948%, after rising above 5.0% on Thursday.

No major US economic data is scheduled to be released on Friday.

From a technical perspective, gold futures bulls possess a short-term technical advantage and momentum. The prices are trending higher on the daily bar chart. The bulls aim to surpass the solid resistance level at $2,000.00 for December futures. On the other hand, the bears intend to push the futures prices below the firm technical support at $1,900.00 in the near term. The first resistance level is expected to be encountered at the overnight high of $1,997.60, followed by $2,000.00. The first support level can be found at $1,980.20, followed by $1,968.90. Wyckoff’s Market Rating: 6.0

The overall short-term technical advantage for silver bulls is moderate. Prices are trending higher on the daily bar chart. The next upside price objective for silver bulls is to surpass the solid technical resistance level at $24.00 for December futures. Conversely, the next downside price objective for the bears is to close prices below the firm support at $22.00. The first resistance level is anticipated to be at this week’s high of $23.49, followed by $23.80. The next support level is observed at $23.00, followed by Thursday’s low of $22.785. Wyckoff’s Market Rating: 5.5.

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Source: www.kitco.com