Gold, silver prices down but up from overnight lows
(Kitco News) - Gold and silver prices are just modestly lower in early U.S. trading Monday, and have moved well up from their overnight lows. The metals remain pressured by the bullish U.S. stock market that saw its indexes hit new record highs overnight, and by relatively calm geopolitical waters at present. December gold futures were last down $3.20 an ounce at 1,465.20. December Comex silver prices were last down $0.088 at $16.865 an ounce.
Asian and European stock indexes were flat to firmer overnight.
The ongoing U.S.-China trade negotiations appeared to be progressing a bit in recent days, as there had been no negative rhetoric coming from either side. However, there have been no reports of any significant breakthroughs on sticking points, either. And just this morning there are some rumblings out of Beijing that China won’t do any trade deal without the U.S. rolling back all of its tariffs on Chinese products.
In overnight news, China’s central bank eased its monetary policy again Monday by lowering its reverse repurchasing rate for the first time since 2015. The trade war with the U.S. has hurt China’s economy and the central bank is working to keep it stimulated.
Hong Kong civil unrest remains elevated and the world marketplace continues to monitor the situation, but it has not boiled over into something significantly impacting global trader and investor sentiment.
The key “outside markets” today see the U.S. dollar index slightly lower. Nymex crude oil prices are also weaker and trading around $57.50 a barrel.
U.S. economic data due for release Monday includes the NAHB housing index, and Treasury international capital data. The U.S. data point of the week will be the FOMC minutes reports release on Wednesday afternoon.
Technically, the gold bears have the slight overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,400.00. First resistance is seen at the overnight high of $1,470.20 and then at $1,475.00. First support is seen at $1,450.00 and then at the November low of $1,446.20. Wyckoff's Market Rating: 4.0
December silver futures bears also have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. A bear flag pattern has also formed recently. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen $17.00 and then at last week’s high of $17.08. Next support is seen at the November low of $16.615 and then at $16.50. Wyckoff's Market Rating: 4.0.