Gold prices rose solidly in early US trading on Friday amid safe-haven demand on the prospect of a potentially new variant becoming widespread on the pandemic front. December gold was last trading at $1,804.30, up $20.50, while December Comex silver was down $0.02 at $23.47 an ounce. Detail Cryptocoin. com
Pandemic doping for gold price
The market tends to be risk-averse on Friday, when the US-Thanksgiving-post-holiday trading day is typically very calm. A new strain of Covid-19 spreading rapidly in South Africa has caused high concern among traders and investors. The European Union and the UK take action to stop air travel from South Africa. Other governments are also moving quickly to try to control the spread of the new strain of coronavirus. Scientists have yet to determine how quickly the new virus can spread or whether it is resistant to existing Covid vaccines. The World Health Organization is holding an emergency meeting on the matter on Friday.
Global stock markets fell sharply in overnight trading. US stock indexes point to solidly lower openings as the New York daily session begins. Nymex crude oil prices slumped to the lowest level in nearly two months at $72.60 a barrel, with US Treasury bond and bill prices rising on the news. The yield on the US Treasury 10-year note is 1% as seen Wednesday. From 64 to now 1%. decreased to 521. Gold prices rose sharply on safe-haven demand. The other major foreign market is seeing the US dollar index solidly low today. Bitcoin prices have fallen sharply and have lost more than 7% on Friday.
Technically, December gold bulls generally have the short-term technical advantage, according to the analyst. A seven-week uptrend is still alive on the daily bar chart. The bulls’ next upside price target is to produce a close above solid resistance at this week’s high at $1,850.40. The bears’ next short-term bearish price target is pushing futures prices below solid technical support at the November low of $1,758.50. Initial resistance is seen at nightly high at $1,816.30, followed by $1,825.00. Initial support is seen at nightly low at $1,786.40, followed by this week’s low at $1,777.40.
Silver bears generally have a short-term technical advantage. The seven-week uptrend has stopped on the daily bar chart. The silver bulls’ next upside price target is to close December futures prices above solid technical resistance at the November high of $25.49 an ounce. The next downside price target for the bears is to close prices below the solid support at $22.00. Initial resistance is seen at nightly high at $23,735 followed by $24.00. The next support is this week’s low of $23.28 followed by November’s low of $23,045.