Gold Prices Weaker Amid Upbeat Risk Appetite
(Kitco News) - Gold prices are modestly lower in early U.S. trading Monday, as traders and investors appear to be in upbeat moods to start the trading week, despite some potential storm clouds on the horizon. December gold futures were last down $3.00 an ounce at $1,197.50. December Comex silver was last up $0.04 at $14.21 an ounce.
World stock markets were mixed to mostly higher overnight. European and U.S. stock indexes were higher, while Asian stock markets were mostly lower. Risk appetite among traders and investors is on the upswing to start the trading week, despite some lingering concerns about the trade war being waged between the U.S. and its major trading partners—namely China. The U.S. is set to levy still more tariffs on China’s imports to the U.S.
Secondary currency and financial markets appeared to stabilize to start the trading week, which has somewhat assuaged the marketplace.
Still, veteran market watchers know that the months of September and October can be very turbulent for the stock and financial markets.
U.S. economic data due for release Monday is light and includes the employment trends index and consumer credit.
Technically, gold bears have the firm overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,220.70. 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 $1,200.00 and then at last week’s high of $1,212.70. First support is seen at last week’s low of $1,195.10 and then at $1,189.50. Wyckoff's Market Rating: 2.5
December silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 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 $14.405 and then at $14.59. Next support is seen at last week’s low of $14.035 and then at $14.00. Wyckoff's Market Rating: 1.5.