Gold, Silver Prices Firmer On Friendly Outside Markets
(Kitco News) - Gold and silver prices are modestly up in early U.S. dealings Monday, supported in part by a rebound in crude oil prices and a weaker U.S. dollar index today. However, gains in the safe-haven metals will be limited by rallying world stock markets to start the trading week. December gold futures were last up $1.80 an ounce at $1,225.20. December Comex silver was up $0.062 at $14.305 an ounce.
Nymex crude oil futures prices are firmer today on short covering and a corrective rebound after hitting a 13-month low last week. Crude prices are down around 20% following the recent sharp declines.
The other key outside market today finds the U.S. dollar index trading lower but not far below this month’s 1.5-year high.
European stock markets were mostly firmer overnight, as trader and investor appetites are more upbeat following a Brexit deal between the U.K. and the EU that appears a bit closer to being agreed upon, but still needs U.K. Parliament approval. U.S. stock indexes are pointed solidly higher at the New York openings, on corrective rebounds from recent strong selling pressure.
Focus this week will be on the upcoming Group of 20 meeting later this week in Argentina that will feature a face-to-face meeting between the U.S. and Chinese presidents. The world’s two largest economies are locked in a heated trade war that appears to show no signs of de-escalating.
There is also talk in the marketplace just recently that the U.S. Federal Reserve may take a more dovish tone on its monetary policy due to notions the recent strong U.S. economic growth may be backing off. The Federal Open Market Committee meets to discuss monetary policy in December.
U.S. economic data due for release Monday includes the Chicago Fed national activity index and the Texas manufacturing outlook survey.
Technically, gold bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the November high of $1,239.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,184.30. First resistance is seen at last week’s high of $1,230.90 and then at the November high of $1,239.30. First support is seen at last week’s low of $1,218.50 and then at $1,213.70. Wyckoff's Market Rating: 3.5
December silver futures bears still have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $14.50 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 $14.54 and then at $14.775. Next support is seen at last week’s low of $14.165 and then at $14.00. Wyckoff's Market Rating: 2.0.