Gold, silver bulls still looking for positive fundamental news
(Kitco News) - Gold and silver prices are modestly down, of up from daily lows, in midday U.S. trading Monday. The safe-haven metals continue to see selling pressure from bull market runs in world equities, including U.S. stock indexes that recent hit record highs. However, some profit taking hit the stock indexes today, and that along with a weaker U.S. dollar today did work to push the metals up from their session lows. February gold futures were last down $3.30 an ounce at 1,469.40. March Comex silver prices were last down $0.111 at $16.995 an ounce.
The gold and silver bulls need a dose of significant geopolitical or economic uncertainty to give them a boost. Such will most certainly occur at some point, but the gold and silver bulls want it sooner rather than later.
Asian and European stock markets were mostly firmer overnight. Trader and investor risk appetite is mostly upbeat to start the trading week, on some positive economic data coming out of China and on hopes for a partial U.S.-China trade deal coming soon.
For the first time in seven months factory activity in China saw expansion. The purchasing managers’ index (PMI) rose to 50.2 in November versus 49.3 in October, and was expected to come in at 49.5. A reading above 50.0 suggests growth in the sector.
Meantime, the Euro zone manufacturing PMI came in at 46.9 in November versus 45.9 in October. A reading of 46.6 was expected for November.
The upbeat manufacturing data coming out of China and the Euro zone—the number two and three economies in the world—worked to lift world equity markets and crude oil prices Monday, but put pressure on safe-haven assets gold and U.S. Treasury markets.
President Trump tweeted Monday morning that the U.S. will slap some more tariffs on South American countries he says are trading unfairly with the U.S. He also in comments to reporters reiterated that China needs a trade deal more than the U.S. He added that he is not sure what the U.S. support for Hong Kong protesters will do to the trade negotiations progress.
The key other “outside market” today sees Nymex crude oil prices higher and trading around $56.00 a barrel.
Technically, February gold futures bears have the overall near-term technical advantage as prices have been trending lower for three months. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,425.00. First resistance is seen at last week’s high of $1,472.90 and then at $1,480.00. First support is seen at last week’s low of $1,456.60 and then at the November low of $1,453.10. Wyckoff's Market Rating: 4.0
March silver futures bears have the overall near-term technical advantage. Prices have been trending lower for 11 weeks. 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 $16.50. First resistance is seen at last week’s high of $17.225 and then at $17.355. Next support is seen at the November low of $16.76 and then at $16.50. Wyckoff's Market Rating: 4.0.
March N.Y. copper closed down 100 points at 265.15 cents today. Prices closed nearer the session low today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 273.85 cents. The next downside price objective for the bears is closing prices below solid technical support at 255.00 cents. First resistance is seen at today’s high of 267.90 cents and then at 270.00 cents. First support is seen at today’s low of 264.75 cents and then at the November low of 262.80. Wyckoff's Market Rating: 5.5.