Gold, Silver Prices See Mild Support From Weaker U.S. Dollar
(Kitco News) - Gold and silver prices are slightly up in early U.S. trading Monday. The precious metals are seeing mild support coming from a lower U.S. dollar index today. Less robust risk appetite to start the trading week is also working in favor of the safe-haven metals. December gold futures were last up $1.10 an ounce at $1,202.30. December Comex silver was last up $0.068 at $14.21 an ounce.
World stock markets were mostly lower overnight. U.S. stock indexes are also pointed toward weaker openings when the New York day session begins. Traders and investors are in a risk-off mode to start the trading week, as reports say the Trump administration is set to slap more tariffs on China in the ongoing trade war between the world’s two largest economies. Reports also said China is considering declining the U.S. offer for new trade talks later this month.
In overnight news, the Euro zone August consumer price index came in at up 0.2% from July and up 2.0%, year-on-year. Those numbers were right in line with market expectations.
The other key outside markets today finds Nymex crude oil prices are higher and trading around $69.50 a barrel. Stiff chart resistance above the market has capped gains, and will likely continue to do so.
U.S. economic data due for release Monday is light and includes the Empire State manufacturing survey.
Technically, gold bears still have the overall near-term technical advantage. However, recent sideways price action favors the bulls and suggests a market bottom is in place. 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 Friday’s high of $1,213.80 and then at last week’s high of $1,218.00. First support is seen at the overnight low of $1,197.50 and then at last week’s low of $1,192.70. Wyckoff's Market Rating: 3.0
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 $13.50. First resistance is seen at last week’s high of $14.39 and then at $14.50. Next support is seen at the overnight low of $14.065 and then at last week’s low of $13.965. Wyckoff's Market Rating: 1.5.