Gold Slightly Down Amid Scant Risk Aversion
(Kitco News) - Gold and silver prices are slightly lower in early U.S. trading Monday. The world marketplace is quieter to start the trading week, with little risk aversion among traders and investors. That’s a bearish element for the safe-haven gold and silver markets. Gold prices are also seeing a mild corrective pullback following strong gains Friday that produced a technically bullish weekly high close, to further suggest a near-term market bottom is in place for the yellow metal. December gold futures were last down $1.40 an ounce at $1,212.80. December Comex silver was last down $0.031 at $14.87 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. U.S. stock indexes are at multi-month highs, to underscore the keener risk appetite in the marketplace at present.
Asian markets were supported overnight by moves by China’s central bank to stabilize its currency, the yuan. The yuan in recent weeks had depreciated against the U.S. dollar.
Reports over the weekend said the U.S. and Mexico could reach a deal on trade (NAFTA 2.0)as soon as today.
In other overnight news, the closely watched German Ifo business sentiment survey rose more than expected in August, at 103.8 versus 101.7 in July.
U.S. economic data due for release Monday includes the Chicago Fed national activity index and the Texas manufacturing outlook survey.
Technically, gold bears still have the overall near-term technical advantage but a price downtrend on the daily bar chart is now in jeopardy. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at last week’s high of $1,215.40 and then at $1,220.00. First support is seen at the overnight low of $1,209.30 and then at $1,200.00. Wyckoff's Market Rating: 2.5.
December silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at last week’s high of $14.965 and then at $15.00. Next support is seen at last week’s low of $14.555 and then at the August low of $14.405. Wyckoff's Market Rating: 2.5.