Price pressure on gold, silver amid bearish charts
(Kitco News) - Gold and silver prices are modestly down in early U.S. trading Monday, as the near-term technical postures for both metals continue to invite the shorter-term futures traders to the sell side of the markets. Some risk aversion to start the trading week is limiting the downside in the safe-haven metals and may prompt some bargain-hunting buying interest before the session is finished. December gold futures were last down $5.30 at $1,753.00. December Comex silver was last down $0.146 at $22.39 an ounce.
Global stock markets were mixed but mostly lower in overnight trading. The U.S. stock indexes are pointed to lower openings when the New York day session begins. There is some risk aversion in the marketplace to start the trading week. Reports said trading in the Chinese property giant Evergrande was halted in Hong Kong Monday, amid reports the troubled firm may be acquired by another firm. China’s markets are closed for a national holiday, Golden Week, until Friday.
Meantime, the Biden administration and Democrats are continuing to struggle to agree on a big spending bill, while at the same time grappling with trying to get the U.S. debt limit raised so the government can pay its bills beyond this month.
Also, reports said mainland Chinese warplanes have been buzzing Taiwan airspace, with Taiwan officials asking the U.S. for help on the matter.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures are near steady and trading around $76.00 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.491%.
U.S. economic data due for release Monday is light and includes manufacturers’ shipments and inventories.
Technically, December gold futures bears have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $1,788.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at the overnight high of $1,766.50 and then at $1,775.00. First support is seen at the overnight low of $1,747.70 and then at $1,737.50. Wyckoff's Market Rating: 3.5
The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at the overnight high of $22.805 and then at $23.00. Next support is seen at the overnight low of $22.29 and then at $22.00. Wyckoff's Market Rating: 2.0.