(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, with silver posting sharp gains. Prices have made a quick rebound from Thursday’s solid losses. However, don’t be surprised to see higher price volatility yet today, heading into the weekend. The recent bigger daily price moves in gold and silver markets suggests volatility will remain high. That’s not near-term bullish. December gold was last up $37.10 at $4,009.10. December silver prices were up $1.173 at $48.355.

Global stock markets were mixed to weaker overnight. U.S. stock indexes are set to open slightly higher when the New York day session begins.

U.S.-China trade tensions are heating up. China will start levying special fees on U.S. ships docking at its ports, starting Oct. 14, in retaliation to a U.S. plan to charge port fees on Chinese ships. China’s fees on U.S. vessels will be 400 Chinese yuan ($56.00) per MT, increasing each year to reach 1,120 yuan by April 2028, according to a Ministry of Transport release and reported by Bloomberg. China’s move is in response to the U.S. plan to start charging port fees on Chinese-built, -operated, or -owned ships, which Beijing says seriously violated the principles of international trade and the U.S. and China Maritime Agreement. Meantime, China’s State Administration for Market Regulation (SAMR) has just opened an antitrust investigation of U.S. company Qualcomm Inc.’s acquisition of Autotalks, the regulator said on Friday. The U.S. chipmaker announced the takeover in June. SAMR will look into whether Qualcomm’s acquisition was in breach of China’s anti-monopoly law, according to the statement. Qualcomm’s shares fell 4% in pre-market trading in New York after the announcement. President Trump and Chinese leader Xi Jinping are scheduled to meet later this month. ”Taken together, the latest moves suggest both sides are lining up bargaining chips ahead of a leaders’ meeting this month on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea” said Bloomberg.

The U.S. Bureau of Labor Statistics has recalled staff to prepare a key U.S. inflation report necessary to calculate the size of next year’s Social Security checks. The agency was directed by the White House Office of Management and Budget to bring back employees to assemble the September consumer price index report in time for publication by the end of this month. The Social Security Administration uses third-quarter CPI data to determine the annual cost-of-living adjustment for recipients for the following year. The CPI report may come out in time for the Federal Reserve’s Oct. 28-29 FOMC policy meeting. Investors expect officials to cut interest rates again, but several policymakers have expressed hesitancy in doing so given inflation is still running well above their target. The U.S. government shutdown has entered its second week, with no signs of a compromise between Republicans and Democrats that would reopen the government. It appears lawmakers won’t take up a vote on the matter until next week, at the earliest.

U.S. throws $20 billion lifeline to Argentina. The U.S. is offering $20 billion in financing to stabilize Argentina's economy and has carried out a rare intervention in currency markets to prop up the Argentine peso. The U.S. Treasury has finalized a $20 billion currency swap framework with Argentina's central bank and directly purchased pesos to help stabilize the exchange rate. “The goal of the U.S. intervention is to help President Javier Milei notch a win in upcoming midterm elections and calm markets unsettled by fears of his leftist rivals returning to power,” said a Bloomberg report.

The U.S. dollar index is set for its best week in a year. The USDX today is on track to rise nearly 2% for the week, marking its strongest weekly advance in a year, supported by sharp weakness in the Japanese yen and Euro currency. The yen is poised to drop almost 4% against the dollar this week after fiscal dove Sanae Takaichi won Japan’s leadership race, reinforcing expectations of higher spending and loose monetary policy. Meanwhile, the Euro has fallen about 1.5% versus the dollar index amid political turmoil in France, where President Emmanuel Macron continues to search for his sixth prime minister in less than two years.

The key outside markets today see the U.S. dollar index weaker on a corrective pullback. Crude oil prices are down and trading around $60.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.14%.

Technically, December gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $4,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,850.00. First resistance is seen at the overnight high of $4,020.50 and then at record high of $4,081.00. First support is seen at Thursday’s low of $3,957.90 and then at $3,900.00. Wyckoff's Market Rating: 8.5.

December silver futures bulls still have the firm overall near-term technical advantage. However, Thursday’s price action scored a bearish “key reversal” down on the daily chart, whereby the high was higher and low was lower than the previous session’s trading range. That’s one chart clue that a market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $50.00. The next downside price objective for the bears is closing prices below solid support at $45.00. First resistance is seen at the overnight high of $48.61 and then at $49.00. Next support is seen at the overnight low of $46.70 and then at $46.00. Wyckoff's Market Rating: 8.0

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