Gold and silver see price pressure as bond yields, USDX rise

New York (Oct 29)  Gold and silver prices are moderately lower in early U.S. trading Friday, weighed down by rising U.S. Treasury yields and a rebound in the U.S. dollar index on this day. December gold was last down $10.10 at $1,792.30 and December Comex silver was last down $0.16 at $23.96 an ounce.

Global stock markets were mixed but mostly down in overnight trading. The U.S. stock indexes are pointed to weaker openings when the New York day session begins. Risk appetite has been dented a bit late this week after quarterly results from behemoths Amazon and Apple showed these companies are starting to be crimped by supply-chain constraints.

In overnight news, the Euro zone reported its October consumer price index at up 4.1%, year-on-year, compared to a reading of up 3.4% in the September report. The October number was the hottest since 2008.

The marketplace will monitor this weekend’s G-20 meeting in Rome.

The key outside markets today see the U.S. dollar index higher. Crude oil prices are slightly up and trading around $83.00 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.612%.  

U.S. economic data due for release Friday includes personal income and outlays, the employment cost index, the Chicago ISM business survey, and the University of Michigan consumer sentiment survey.

Technically, December gold futures bulls have the overall near-term technical advantage as prices are in a four-week-old uptrend on the daily chart. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,836.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at the overnight high of $1,802.90 and then at the October high of $1,815.50. First support is seen at today’s low of $1,791.80 and then at this week’s low of $1,783.00.

KitcoNews