Gold, silver see modest price gains amid weaker USDX
(Kitco News) - Gold and Silver prices modestly up in early U.S. trading Monday. The precious metals markets are being supported by a pullback in the U.S. dollar index on this day. Both precious metals are looking for the next significant element to drive near-term price direction. December gold futures were last up $8.00 at $1,874.10 and December Comex silver was last up $0.157 at $23.25 an ounce.
Global stock markets were mixed to mostly firmer overnight. U.S. stock indexes are set to open the New York day session higher. Traders and investors are less risk averse to start the trading week, but they know the next six weeks could be highly volatile for many markets, what with the U.S. elections coming in early November amid concerns about a smooth transfer of power if President Trump losses the election. Covid-19 cases are on the rise in many countries, the Brexit issue is coming down to the wire with no deal between the U.K. and the EU, and high tensions continue between the U.S. and China. These are also worrisome elements to spice up the uncertainty mix in the market place at present.
In other overnight news, China's central bank at its regular monetary policy meeting has just pledged to keep its monetary policy more flexible and targeted, including giving more credit to businesses.
The important outside markets early today see the U.S. dollar index down on a corrective pullback after hitting a two-month high late last week. Nymex crude oil prices are weaker and trading around $40.00. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.67% today.
Discussions between U.S. Democrats and Republicans on a second financial stimulus package for Americans are still ongoing, but many doubt a deal can be reached and implemented before the U.S. election.
The U.S. economic data point highlight of the week will be Friday morning's monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%.
U.S. economic data due for release Monday includes the Texas manufacturing outlook survey.
Technically, the December gold futures bulls have the slight overall near-term technical advantage but prices are trending down on the daily bar chart. Bulls' next upside price objective is to produce a close in December futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at Friday's high of $1,879.30 and then at $1,900.00. First support is seen at last week's low of $1,851.00 and then at $1,825.00. Wyckoff's Market Rating: 5.5.
December silver futures bulls and bears are on a level near-term technical playing field. Prices are trending lower on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.62 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at $23.50 and then at $23.80. Next support is seen at the overnight low of $22.61 and then at $22.00. Wyckoff's Market Rating: 5.0.