Gold, silver near steady as trading remains choppy
(Kitco News) - Gold futures prices are a bit firmer, while silver is modestly down in midday U.S. trading Monday. The precious metals saw limited buying interest to start the trading week, as the U.S. dollar index posted moderate gains on the day. However, a bit of support for the safe-haven metals came from U.S. and global stock markets that saw selling pressure Monday. December gold futures were last up $1.40 at $1,906.50 and December Comex silver was last down $0.175 at $24.50 an ounce.
Global stock markets were mostly down overnight. U.S. stock indexes are solidly lower at midday. 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 $38.60 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.81% today.
Technically, December gold futures bulls still have the overall near-term technical advantage but trading has been choppy as bulls don’t have the power to sustain a price uptrend on the daily bar chart. 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
December silver futures bulls still have the overall near-term technical advantage and are still working on a price uptrend on the daily chart, but need to show fresh power soon to keep it alive. 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 $25.00 and then at last week’s high of $25.425. Next support is seen at today’s low of $24.145 and then at $24.00. Wyckoff's Market Rating: 6.5.
December N.Y. copper closed down 340 points at 309.50 cents today. Prices closed nearer the session low today on more profit taking after hitting a more-than-two-year high Wednesday. 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 330.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 314.30 cents and then at Friday’s high of 316.45 cents. First support is seen at today’s low of 307.70 cents and then at 305.00 cents. Wyckoff's Market Rating: 8.0.