Gold, silver prices up on chart-based buying
(Kitco News) - Gold and silver prices are modestly higher in early U.S. trading Monday, despite upbeat trader and investor risk appetite to start the trading week. The technicals in both metals remain fully bullish, which continues to attract speculator buying interest. December gold futures were last up $4.10 an ounce at 1,519.70. December Comex silver prices were last up $0.181 at $18.30 an ounce.
Asian and European stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Trader and investor risk appetite remains elevated. News Friday that China’s central bank eased its monetary policy and reports over the weekend that the U.K. appears to be avoiding, for now, a “hard Brexit,” have most of the world marketplace in an upbeat mood.
There was a Dow Jones Newswires report over the weekend that said China’s official economic numbers are probably not accurate and likely are overly hyped by the government. The report said China’s overall economic growth (gross domestic product) is probably about half of what the official numbers say, or actually around 3%, annual growth. This news is not surprising to many market watchers.
There were protesters demonstrating in Hong Kong again over the weekend. However, the markets are not now deeming the protests as an escalation in the overall situation.
U.S. economic data due for release Monday includes the employment trends index and consumer credit.
Technically, the gold bulls still have the firm overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,566.20. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,500.00. First resistance is seen at $1,525.00 and then at 1,530.00. First support is seen at last week’s low of $1,510.70 and then at $1,500.00. Wyckoff's Market Rating: 7.0
December silver futures bulls have the firm overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the September high of $19.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.64. First resistance is seen at $18.50 and then at $18.76. Next support is seen at $18.00 and then at $17.75. Wyckoff's Market Rating: 7.0.