(Kitco News) – Gold prices rose and silver prices edged higher in early U.S. trading on Thursday. Demand for safe havens is in the spotlight for the yellow metal as risk aversion increases later this week following escalating military action in the Middle East. February gold was last up $10.40 to $2,016.90. The March silver price was $22.74, up $0.071 last time.
Geopolitical tensions in the Middle East have escalated further after Pakistan launched retaliatory airstrikes into Iran, killing at least nine people. The attack follows an Iranian attack on Pakistani territory on Tuesday that left two people dead. Risks of escalation remained as Iran began a planned air defense exercise at Chabahar port near Pakistan on Thursday. Meanwhile, the US has launched further airstrikes against Iranian-backed Houthi rebel targets in Yemen.
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Stock markets in Asia and Europe were mixed, with overnight gains. U.S. stock index futures are set to open higher at the start of New York trading.
In major external markets today, the US dollar index is expected to decline slightly after hitting a four-week high on Wednesday. Nymex crude oil prices are mostly stable, trading around $72.50 per barrel. Meanwhile, the yield on the benchmark 10-year US Treasury note is currently around 4.09%.
U.S. economic data released Thursday will include the weekly unemployment claims report, the Philadelphia Fed's business survey, new home construction and the DOE liquid energy inventory weekly report.
Technically, gold futures bulls have the overall technical advantage in the short term, but it is weakening a bit. On the daily bar chart, prices are still on a three-month upward trend. The bulls' next price objective is to break above solid resistance at this week's high of $2,062.80, creating a closing price for March futures. The Bears' next near-term downside objective is to push the futures price below solid technical support at $2,000.00. Initial resistance is seen at $2,025.00 and Wednesday's high at $2,036.10. Initial support is seen at today's low of $2,007.70 and this week's low of $2,004.60. Wyckoff Market Rating: 6.0.
Silver bears are technically favorable overall in the short term. On the daily bar chart, prices are on a choppy, five-week downward trend. The next upside objective for silver bulls is for the March futures price to close above solid technical resistance at $25.00. The next downside price objective for the bears is a close below the November low of $22.26. Initial resistance is seen at $23.00 and this week's high at $23.50. The next support is seen at the January low at $22.63, followed by $22.50. Wyckoff Market Rating: 4.0.
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