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Gold prices weaker as U.S. stock market near record high

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(Kitco News) - Gold prices are modestly down in early U.S. trading Monday. A bullish U.S. stock market that is near record highs is limiting buying interest in the safe-haven metals. However, the downside in gold and silver markets will be limited as their technical chart postures remain overall bullish. December gold futures were last down $2.40 an ounce at 1,502.70. December Comex silver prices were last up $0.044 at $17.97 an ounce.

Asian and European stock indexes were mostly up overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Trader and investor optimism remains elevated as weekend reports from China said the Phase 1 part of the U.S.-China trade deal is nearly ready for signing.

The markets are not reacting to the weekend news the U.S. military eliminated the world’s top ISIS terrorist leader.

There was more downbeat economic data coming out of China, as the world’s second-largest economy over the weekend reported its industrial sector profits declined significantly in September.

It’s a very big U.S. economic data week, highlighted by the Federal Reserve’s FOMC meets that starts Tuesday and the important U.S. jobs report that’s out Friday morning.

Metals traders will see one of the bigger weeks of the year for their markets, as its LME Week in London.

The key “outside markets” today find Nymex crude oil prices slightly weaker in early U.S. trading today and trading around $56.50 a barrel. Meantime, the U.S. dollar index is slightly down.  

U.S. economic data due for release Monday includes the Chicago Fed national activity index, advance economic indicators and the Texas manufacturing outlook survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the firm overall near-term technical advantage. Prices have been trending higher for four weeks. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,543.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at last week’s low of $1,484.00. First resistance is seen at the overnight high of $1,510800 and then at last week’s high of $1,520.90. First support is seen at $1,500.00 and then at $1,490.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the firm overall near-term technical advantage. Prices have been trending higher for four weeks. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.81 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $17.44. First resistance is seen at the overnight high of $18.145 and then at last week’s high of $18.35. Next support is seen at Friday’s low of $17.80 and then at $17.50. Wyckoff's Market Rating: 7.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.