The dollar is showing some early strength, yet gold, silver, and platinum are still showing gains in a fashion that denies the influence of the currency index early on. While gold and silver are not seeing as much conclusively supportive board-based physical commodity market price gains this morning (most specifically from skyrocketing prices) grains, industrial metals, and natural gas enter the Friday session with a positive bid. As indicated previously this week it is impossible to predict the next significant iteration from the North Korean situation, but overnight some of the anxiety might have been deflated in the wake of comments from the Russian president that pressure on North Korea is both futile and a dead end. Perhaps gold garnered a significant portion of its gain yesterday from a massive jump in nearby/prompt gasoline prices as some players speculated that could result in a spark for inflation. Overall, in the ends the primary driving force of gold and silver will be the direction of the dollar, which in turn will see a major decision off the US monthly payroll readings. However, expectations for the US nonfarm payroll reading are mostly below last month’s 209,000-job addition and therefore the dollar is vulnerable to a slight downside miss in the numbers today.

Daily stochastics have risen into overbought territory which should support reversal action if it occurs. A positive signal for trend short-term was given on a close over the 9-day moving average. The next upside target is 17.946 with a reading over 70, the 9-day RSI is approaching overbought levels. The next area of resistance is around 17.842 and 17.946, while first support hits today at 17.488 and below there at 17.237.

Dec ’17 Silver Daily Chart

Dec '17 Silver Daily Chart

Manon Lasserre