cryptocoin.com As you can follow in our news, gold prices headed for a one-week low close to the downside in the early US trading hours on Friday and fell sharply. According to market analyst Jim Wyckoff, all of the US inflation data coming with rising US Treasury yields and the recovery in the US dollar index (DXY) are working against the bulls in the precious metals markets. Gold contracts for December futures were last traded at $1,778, down $24.10, while silver contracts for December futures were last traded at $23.85, down $0.27.
US Employment Cost Index came in better than expected
The newly released US third-quarter Employment Cost Index report showed an increase of 1.3%, above the consensus estimate of 0.9%. The closely watched PCE price index rose 0.3% year on year and 4.4% year on year. According to the analyst, this data falls into the camp of US monetary policy hawks who want to see the Federal Reserve tighten its monetary policy as soon as possible. The analyst states that this data boosted DXY and helped push Treasury rates north.
Global stock markets were mixed, but mostly fell in overnight trading. Jim Wyckoff underlines that risk appetite has dimmed a bit this week, after US stock indexes pointed to weaker openings as the New York daily session began, and quarterly results from Amazon and Apple giants showed those companies were starting to be squeezed by supply chain restrictions.
Eurozone October consumer price index was announced as 4.1% year-on-year, compared to 3.4% increase in the September report. The October data was the highest since 2008. On Sunday this weekend, the G-20 meeting in Rome will be followed.
Gold and silver technical analysis
Technically, December gold bulls have the overall short-term technical advantage as prices are in a four-week uptrend on the daily chart, according to market analyst Jim Wyckoff. However, the analyst states that the bulls need to show fresh strength soon to keep the price uptrend alive and makes the following assessment:
The bulls’ next upside price target is to produce a close above the solid resistance at the September high at $1,836.90. The bears’ next short-term bearish price target is to push futures prices below solid technical support at $1,750.00. Initial resistance is seen at $1,790 followed by $1,800. Initial support is seen at today’s low at $1,776.20, followed by $1,760.
Silver bulls have overall short-term technical advantage and prices are in a four-week uptrend on the daily bar chart, but bulls need to show fresh strength soon to keep it alive, according to Jim Wyckoff. The analyst states that the next upside price target for silver bulls is to close December futures prices above solid technical resistance at $25.00, while the next downside price target for bears is to close prices below solid support at $23.00. For silver, the analyst points out the following technical levels:
Initial resistance is seen at today’s high at $24.14 and then this week’s high at $24.695. The next support is seen at today’s low at $23.76 followed by $23.615.
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