Gold sees price pressure amid uptick in risk appetite
(Kitco News) - Gold and silver futures prices are modestly down in early U.S. trading Tuesday. Buying interest is limited today as trader and investor risk attitudes have up-ticked just a bit on better hopes for a U.S. stimulus package deal. Losses today are limited by a weaker U.S. dollar index so far this week. December gold futures were last down $4.80 at $1,906.90 and December Comex silver was last down $0.053 at $24.645 an ounce.
Global stock markets were mixed to firmer overnight. U.S. stock indexes are set to open the New York day session higher on hopes the U.S. Congress and the Trump administration can come to agreement on a new Covid-19 stimulus package. House Speaker Pelosi set a deadline for today on getting a deal completed. Now, some in the marketplace sense a deal could be reached by the end of today. Others remain doubtful. Corporate earnings reports are also in focus at present.
Still, trader and investor risk appetite is being squelched by the Covid news that is getting worse every day. Infections are rising in Europe, the U.S. and South America. No vaccine coming to the public is in sight. However, there is a consensus in the marketplace that there will not be the near-complete lockdowns of businesses and economies that were seen in the spring, even if the Covid situation gets worse, which many expect it will as winter approaches in the northern hemisphere.
The important outside markets early today see the U.S. dollar index lower again. Nymex crude oil prices are near steady and trading around $40.80 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.78% today.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and new residential construction.
Technically, the December gold futures bulls have the overall near-term technical advantage amid recent choppy and sideways trading. 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 Monday’s high of $1,923.40 and then at $1,930.60. First support is seen at the overnight low of $1,896.60 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 and are working on a fledgling price uptrend. 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 $22.965. First resistance is seen at this week’s high of $25.12 and then at the October high of $25.71. Next support is seen at Monday’s low of $24.215 and then at $24.00. Wyckoff's Market Rating: 6.5.