Gold, silver prices steady-firmer as technicals improving
(Kitco News) - Gold and silver futures prices are steady to slightly higher in early U.S. trading Monday. Recent price action has turned the daily charts more bullish for both metals, which is inviting some fresh technical buying interest. December gold futures were last up $1.00 at $1,927.40 and December Comex silver was last up $0.112 at $25.22 an ounce.
Global stock markets were mostly firmer overnight. U.S. stock indexes are set to open the New York day session mixed to firmer. The U.S. Treasury markets and U.S. government are closed Monday for the Columbus Day holiday, while Canadian markets are closed for the Thanksgiving holiday.
Three weeks before the U.S. elections former vice president Joe Biden is widening his lead in the polls over President Donald Trump. Also, there is now talk in the marketplace that the Democrats could take the Senate—possibly having all three branches of government be Democrat-controlled. This possibility has not rattled the stock market despite such a scenario likely meaning higher taxes for citizens and businesses. The tone of the marketplace at present suggests traders and investors may be more relieved that a suspected solid loss by Trump would make for a less uncertain exchange of power, as opposed to a very close election result that Trump could more easily contest if he lost.
In other news, the U.S. Congress does not appear to be getting closer to a Covid-19-related stimulus package for Americans.
Covid-19 continues to spread at an alarming rate in parts of Europe, including the U.K.
China has relaxed its rules on the trading of its currency, the yuan—specifically shorting it, suggesting China wants to slow the appreciation of its currency, which hit a 1.5-year high against the U.S. dollar on Friday.
There is no major U.S. economic data due for release Monday.
U.S. economic data due for release Friday is light and includes monthly wholesale trade.
Technically, the December gold futures bulls have the overall near-term technical advantage as recent price action has negated a downtrend line on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,985.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at the overnight high of $1,939.40 and then at $1,950.00. First support is seen at $1,920.00 and then at $1,900.00. Wyckoff's Market Rating: 7.0.
December silver futures bulls have the overall near-term technical advantage and are gaining momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at the overnight high of $25.71 and then at $26.00. Next support is seen at $25.00 and then at $24.50. Wyckoff's Market Rating: 7.0.