Gold Prices Pressured By Higher USDX, Better Risk Appetite
(Kitco News) - Gold prices are moderately lower in early-afternoon U.S. trading Monday, pressured by a return of trader and investor risk appetite to the world marketplace to start the trading week—despite some potentially disruptive elements that still loom over the stock and financial markets. A stronger U.S. dollar index on this day also worked against the precious metals markets. December gold futures were last down $4.30 an ounce at $1,224.50. December Comex silver was last down $0.08 at $14.575 an ounce.
Global stock markets were mostly higher Monday. Asian shares gained, led by China’s stock market rallying more than 4% as Chinese economic officials said they are prepared to stimulate the economy, including cutting personal taxes. European stock markets were also up, but worries remain regarding Italy’s budget problems with the European Union, and with Brexit concerns. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
The U.S.-China trade war remains in focus after Trump administration economic advisor Larry Kudlow said China is doing “nothing” to mitigate the matter. Reports last week said President Trump and Chinese leader Xi Jinping will meet at the G20 conference in Argentina in late November.
Thursday’s European Central Bank regular monetary policy meeting will be closely watched by the marketplace. No change in EU monetary policy is expected, but ECB chief Mario Draghi’s press conference could provide clues on future moves by the central bank. Also, Draghi could comment on the rift between Italy’s new government and the EU.
The U.S. economic highlight this week will be the first estimate of third-quarter GDP due out Friday morning. GDP is seen up 3.4% in the third quarter, on an annual basis.
The other key outside market today finds November Nymex crude oil prices weaker and just below $69.00 a barrel.
Technically, the gold bulls have the overall near-term technical advantage. The recent pause is not bearish. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,232.60 and then at the October high of $1,236.90. First support is seen at last week’s low of $1,220.40 and then at $1,212.00. Wyckoff's Market Rating: 6.0
The silver bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing December futures 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 the September low of $13.965. First resistance is seen at last week’s high of $13.88 and then at the October high of $13.95. Next support is seen at last week’s low of $14.47 and then at the October low of $14.255. Wyckoff's Market Rating: 3.0.
December N.Y. copper closed up 55 points at 278.35 cents today. Prices closed near the session low today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 257.45 cents. First resistance is seen at 280.00 cents and then at today’s high of 283.35 cents. First support is seen at today’s low of 277.25 cents and then at 275.00 cents. Wyckoff's Market Rating: 3.0.