Gold, silver prices supported by slumping greenback
(Kitco News) - Gold and silver prices are modestly up in early U.S. trading Monday, while silver prices are solidly higher. An eroding U.S. dollar index that fell to a nine-week low overnight is helping to lift precious metals prices. However, gains in the safe-haven metals are being limited by higher global equity markets to start the trading week. The U.S. stock indexes are trading very close to their yearly and all-time highs. December gold futures were last up $1.70 an ounce at 1,495.80. December Comex silver prices were last up $0.247 at $17.825 an ounce.
Trader and investor attitudes worldwide remain generally upbeat to start the trading week. The U.S.-China trade negotiations appear to be going well, including implementing the “Phase 1” agreement reached between the world’s two largest economies recently.
The Brexit situation continues to languish after a hoped-for weekend deal between the U.K. and the European Union fell through. The British Parliament moved to again delay by three months a vote to seal the Brexit deal. U.K. Prime Minister Boris Johnson is not happy about the situation.
A heavy slate of U.S. corporate earnings reports this week will be the focus of U.S. stock market traders.
Nymex crude oil prices are weaker in early U.S. trading today and trading around $53.50 a barrel.
There is no major U.S. economic data due for release Monday.
Technically, the gold bulls have the overall near-term technical advantage. A six-week-old downtrend line is still in place on the daily bar chart. The recent “collapse in volatility” of prices the past three sessions suggests a bigger price move is on the horizon. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,500.00 and then at last week’s high of $1,503.00. First support is seen at $1,487.00 and then at last week’s low of $1,478.00. Wyckoff's Market Rating: 6.0
December silver futures bulls have the overall near-term technical advantage and are working on negating a six-week-old downtrend line in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.94. First resistance is seen at $18.00 and then at $18.25. Next support is seen at the overnight low of $17.53 and then at $17.33. Wyckoff's Market Rating: 6.0.