Gold, silver prices up as global equity markets pause
(Kitco News) - Gold and silver prices are trading modestly higher in early U.S. trading Monday. The safe-haven metals are seeing just a bit of buying interest as the world stock markets have seen buying interest limited early this week by a downbeat economic report coming out of China. February gold futures were last up $3.50 an ounce at 1,468.60. March Comex silver prices were last up $0.104 at $16.70 an ounce.
Asian and European stock indexes were mixed overnight. The U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. The world marketplace is seeing just a bit of risk aversion to start the trading week, following weaker economic data coming out of China, the world’s second-largest economy. China’s exports fell 1.1% in November, year-on-year, including shipments to the U.S. declining 23% in the period. China’s exports were seen up 1.0% in November. Imports were up 0.3% in the same period, and were expected to be unchanged.
The U.S. economic highlight of the week is the Federal Reserve’s Open Market Committee meeting (FOMC) that begins Tuesday morning and ends Wednesday afternoon with a statement. The Fed is expected to make no changes in its monetary policy. The European Central Bank also meets on monetary policy Thursday.
Goldman Sachs is recommending investors buy some more gold in the coming months, due to stubbornly low global bond yields, the higher potential for stock market turbulence and the keener uncertainty of the 2020 U.S. presidential election.
The key “outside markets” today see the U.S. dollar index weaker. Meantime, Nymex crude oil prices are lower and trading around $58.75 a barrel.
U.S. economic data due for release Monday is light and includes the employment trends index. The pace report picks up rapidly Tuesday and through the rest of the week.
Technically, the gold bulls and bears are on a level overall near-term technical playing field amid choppy and sideways trading recently. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,500.00. Bears' next near-term downside price breakout objective is pushing futures prices below solid technical support at the November low of $1,453.10. First resistance is seen at $1,475.00 and then at $1,480.00. First support is seen at today’s low of $1,463.00 and then at $1,456.60. Wyckoff's Market Rating: 5.0
March silver futures bears have regained the overall near-term technical advantage and restarted a more-than-three-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $17.415 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at $17.25. Next support is seen at the overnight low of $16.565 and then at $16.50. Wyckoff's Market Rating: 4.0.