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Gold sees slight price weakness amid firmer USDX

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(Kitco News) - Gold futures prices are a bit lower in early U.S. trading Monday. The precious metals continue to trade in an inverse fashion with the daily movements of the U.S. dollar index, which is higher today. Losses in the yellow metal are limited to start the trading week, as U.S. and global stock markets see some selling pressure. December gold futures were last down $0.90 at $1,904.30 and December Comex silver was last down $0.365 at $24.31 an ounce.

Global stock markets were mostly down overnight. U.S. stock indexes are set to open the New York day session lower. Trader and investor attitudes are more downbeat to start the trading week, as the Covid-19 pandemic infections are on the rise in much of the world, including Europe and the U.S. Worries are increasing the new lockdowns are coming this winter, even though they may not be as extreme as seen last spring.

Recent Covid-19 stimulus package discussions between U.S. congressional Democrats and Republicans have failed to produce a deal, just a bit more than a week before the U.S.  elections. That’s also a negative for the stock markets.

Major central bank monetary policy meetings this week see the Bank of Canada Wednesday, and European Central Bank and Bank of Japan both meeting Thursday. Deflation has become a bigger concern in Europe.

The important outside markets early today see the U.S. dollar index higher. Nymex crude oil prices are lower and trading around $39.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.81% today.

U.S. economic data due for release Monday includes the Chicago Fed national activity index, new residential sales, and the Texas manufacturing outlook survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bulls have the overall near-term technical advantage amid recent choppy and sideways trading. Bulls are working on a fledgling price uptrend. 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 Friday’s high of $1,917.30 and then at $1,925.00. First support is seen at today’s low of $1,892.50 and then at $1,885.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage and are working on a 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 the overnight high of $24.765 and then at $25.00. Next support is seen at $24.00 and then at $23.65. Wyckoff's Market Rating: 6.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.