Senior Analyst Shares Key Levels for Gold and Silver!

Gold rose modestly in volatile trades supported by the massive drop in USDX. Gold prices are slightly higher in mid-day trading on Thursday, on a volatile trading day. Solid losses in the US dollar index today are creating some buying interest in the precious metals markets. A pessimistic US GDP report and a US GDP report by US monetary policy pigeons asking the Federal Reserve to delay monetary policy stimulus were also amicable for metals markets today. December gold was last trading at $1,803.00, up $4.40, while December Comex silver was down $0.046 at $24.15 an ounce.

New data and levels for gold

In today’s US data, the preliminary estimate for third-quarter gross domestic product rose 2.0%, compared to expectations for 6.7% growth in the second quarter. The closely watched PCE price index was reported at 5.3%, compared to a 6.5% increase in the second quarter. Weak GDP data was somewhat offset by the declining weekly US jobless claims report. Global stock markets weakened mostly in overnight trading. U.S. stock indices are quite high at midday, limiting the upside movement of safe-haven metals. Trader and investor attitudes are upbeat this week as they prefer to focus on positive corporate earnings reports. Currently, the market is pushing aside economic growth, supply chain bottlenecks and rising inflation expectations in China.

As we reported on Kriptokoin.con, the European Central Bank held its regular monetary policy meeting on Thursday. No change in the ECB monetary policy was implemented and was not expected. The ECB said its bond-buying program will continue until at least March 2022. ECB President Christine Lagarde was expected to say at a press conference that the eurozone remained too weak for policymakers to withdraw stimulus. Meanwhile, the Canadian central bank ended its quantitative easing program on Wednesday.

The World Gold Council reported that gold demand fell 7% in the third quarter compared to the third quarter of 2020. Outflows from gold-backed ETFs were the primary factor. WGC said that increased demand for jewelery dampened the decline in demand. Demand for gold jewelry increased by 33% year-on-year. Meanwhile, central banks purchased 69 metric tons of reserves versus 10 MT in the same period of 2020. Major foreign markets today see the US dollar index drop sharply and hit a four-week low. Crude oil prices are lower, trading around $81.75 a barrel. Meanwhile, the 10-year US Treasury bond yield currently brings in 1.556%.

technical view

Technically, December futures gold bulls have the overall short-term technical advantage amid a four-week price uptrend on the daily bar chart. 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 the solid technical support at $1,750.00. Initial resistance is seen at today’s high at $1,812.70 followed by October’s high at $1,815.50. Initial support is seen at today’s low at $1,793.10, followed by this week’s low at $1,783.00.

December silver futures bulls generally have the short-term technical advantage. Prices are in a four-week uptrend on the daily chart. Silver bulls’ next upside price target is to close prices above solid technical resistance at $25.00 an ounce. The next downside price target for the bears is to close prices below the solid support at $23.00. Initial resistance is seen at $24.33 Wednesday, followed by this week’s high at $24.695. The next support is seen at this week’s low at $23,905 followed by $23,615.

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