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Gold, silver prices at multi-week lows amid less risk aversion

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(Kitco News) - Gold prices are solidly lower and hit a seven-week low in early U.S. trading Monday. Silver prices hit a five-week low today. More risk appetite in the market place early this week is bearish for the safe-haven metals. A strong U.S. dollar index, which hit a new high for the year on Friday, is also helping to pressure the precious metals markets. December gold futures were last down $14.70 an ounce at 1,491.80. December Comex silver prices were last down $0.382 at $17.27 an ounce.

There is a bit less risk aversion in the marketplace Monday, following markets being roiled last Friday by reports the U.S. was considering limiting U.S. investors' investment in China, including the U.S. stock exchanges de-listing Chinese companies. Weekend reports then said the Trump administration is not considering such moves.

Asian stocks were mixed to mostly weaker, while European stock markets were mixed in overnight trading. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins.

Today is the last trading day of the month and of the quarter, which makes it an extra important day from a technical perspective.

Asian stock markets saw some selling pressure after the 17th weekend in a row of demonstrations in Hong Kong. This past weekend is being called the worst, with many arrests after protestors bombarded police with everything from bricks to firebombs.

China's economy got some slightly upbeat news Monday, as the official manufacturing purchasing managers index rose to 49.8 in September from 49.5 in August. It was the fifth month in a row with a reading below 50.0, which suggests contraction in the sector. The September PMI report did come in slightly above market expectations.

In other overnight news, the Euro zone jobless rate in August was reported at 7.4% versus 7.5% in July. The August rate was the lowest in 11 years.

Nymex crude oil prices are lower and trading around $55.25 a barrel.  

U.S. economic data due for release Monday includes the international investment position, the ISM Chicago business survey, and the Texas manufacturing survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls still have the overall near-term technical advantage, but a four-month-old uptrend on the daily bar chart has been negated. Bulls' next upside price objective is to produce a close in October futures above solid resistance at last week's high of $1,543.30. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,467.00. First resistance is seen at $1,500.00 and then at the overnight high of $1,507.20. First support is seen at the overnight low of $1,486.20 and then at $1,480.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have lost their overall near-term technical advantage. A four-month-old uptrend on the daily bar chart has been negated and a four-week-old downtrend is now in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.0 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $17.50 and then at the overnight high of $17.66. Next support is seen at the overnight low of $17.16 and then at $17.00. Wyckoff's Market Rating: 5.0.

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