Gold sees modest price advance as USDX erodes
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(Kitco News) - Gold and silver futures prices are firmer in midday U.S. trading Monday. Moderate support has come from a weaker U.S. dollar index to start the trading week. The charts remain overall friendly and that is also inviting some bulls to the buy side. Some safe-haven demand ahead of the U.S. elections in two weeks is also likely occurring. December gold futures were last up $5.60 at $1,912.10 and December Comex silver was last up $0.32 at $24.73 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes lost overnight gains and are trading near steady at midday.
There are some renewed hopes for an agreement between U.S. congressional Democrats and Republicans on a stimulus package for Americans. House Speaker Nancy Pelosi over the weekend set a Tuesday deadline for an agreement with the White House. President Trump said he is closer to Democrats' demands for a larger overall package than congressional Republicans. The Senate Wednesday plans to vote again on a $500 billion coronavirus aid package.
There was upbeat economic data coming out of China, as its economy in the third quarter grew by 4.9%, which was slower than expected but still considered a good recovery from the business lockdowns experienced earlier in the year. China remains the fastest-recovering major economy, after the lockdowns.
The important outside markets today see the U.S. dollar index lower. Nymex crude oil prices are slightly up and trading around $41.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.76% today.
Technically, December gold futures bulls have the overall near-term technical advantage as trading has turned choppy and sideways. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,939.40. 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 today’s high of $1,923.40 and then at $1,931.00. First support is seen at $1,900 and then at last week’s low of $1,885.00. Wyckoff's Market Rating: 6.5
December silver futures bulls have the overall near-term technical advantage. 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 the September low of $21.81. First resistance is seen at today’s high of $25.12 and then at the October high of $25.71. Next support is seen at today’s low of $24.68 and then at $24.00. Wyckoff's Market Rating: 6.5.
December N.Y. copper closed up 240 points at 309.15 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 312.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 283.45 cents. First resistance is seen at 312.10 cents and then at 315.00 cents. First support is seen at today’s low of 305.70 cents and then at 302.45 cents. Wyckoff's Market Rating: 8.0.