Gold and silver prices rise as the ECB easily bows

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(Kitco News) – Gold and silver prices are rising sharply and reaching daily highs on Thursday morning, at the start of the US trading session. The bulls of the precious metals needed good news and they received it today when the European Central Bank eased its monetary policy. December gold futures were up $ 21.90 per ounce at $ 1,525.10. In December, Comex 's money prices were up $ 0.38, to $ 18.55 an ounce.

The monetary policy meeting of the European Central Bank, which has just ended, has enabled the bank to take measures to considerably soften its monetary policy – more than expected by the market. The ECB lowered interest rates by 0.1%, to minus 0.5%, and also announced a new program of buying "quantitative easing" bonds, the largest in Europe. three years. The US Federal Reserve will meet next week and is expected to cut US interest rates by 0.25%. On Wednesday, President Trump called the Federal Reserve "boneheads" for not lowering interest rates faster and further.

Asian stock markets mostly increased overnight, while European stock market indices were generally weaker. US equity indices point to firmer opening at the start of New York's daily session. The risk appetite of traders and investors generally remains high late this week.

Trade tensions between the world's two largest economies – the United States and China – have weakened this week. The United States announced a slight delay in the implementation of certain tariffs on China, which were to come into effect on 1 October. This follows China's decision this week to exempt certain US products from their own tariffs. Both parties are scheduled to meet in October. According to reports released today, China plans to limit the scope of negotiations to trade only, leaving aside other issues that have been difficult, such as national security.

The highlight of Thursday's US economic day is August's consumer price index, which is expected to increase 0.1% from July and 1.8% year-over-year.

The main "foreign markets" today are seeing Nymex crude oil prices drop and trade around $ 55.00 a barrel. Thursday sees a meeting of the OPEC cartel on oil. The US dollar index is higher at the start of today's US trading, stimulated by the weakness of the euro following the loosening of the ECB.

Other US economic data to be released on Thursday includes the weekly job application report, actual earnings, and the Treasury's monthly budget.

Technically, gold bullion has the overall short-term technical advantage and maintains a three-month bullish trend on the daily bar chart. Bulls next bullish target is to produce a futures contract in October, above a strong September high of $ 1,566.20. Bears' next short-term price reduction target pushes December futures prices below strong technical support to a low of $ 1,492.10 this week. The first resistance is seen at $ 1,535.00, then at 1,540.00. The first support is seen at $ 1,510.00, then at $ 1,500.00. Wyckoff Market Note: 7.0

The December silver futures have the overall technical advantage in the short term. Prices are in a bullish trend of three months on the daily bar chart. The next bullish price target of the Silver Bulls is the closing price, above a strong technical resistance, at $ 19.00 an ounce. The next downside price target for the bears is a lower closing price at $ 17.50. The first resistance is seen at $ 18.76, then at $ 19.00. The next support is seen at $ 18.25, then at the overnight low of $ 18.085. Wyckoff Market Estimate: 7.0.