Gold price near steady; bulls need a fresh spark
(Kitco News) - Gold prices are not far from unchanged in early U.S. trading Monday. Bulls are wobbly again and need some new fundamental information to jumpstart a rally. December gold futures were last up $0.60 at $1,768.30. December Comex silver was last up $0.031 at $23.38 an ounce.
Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are pointed to lower openings when the New York day session begins. Risk aversion is keener to start the trading week, amid rising energy costs and increasing worries about stagflation. Nymex crude oil prices hit a seven-year high of $83.87 a barrel overnight. China’s third-quarter gross domestic product growth slowed to 4.9%, year-on-year, lower than expectations and the slowest pace of growth in a year, hurt by power shortages and supply chain bottlenecks. China’s GDP rose 7.9% in the second quarter. Meantime, the governor of the Bank of England said Sunday the BOE will have to act to curb inflationary pressure. He said inflation in the U.K. had already risen and would rise further, to warrant action.
The other key outside market today sees the U.S. dollar index higher. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.609%.
U.S. economic data due for release Monday includes industrial production and capacity utilization, Treasury international capital data and the NAHB housing market index.
Technically, December gold futures bulls have the slight overall near-term technical advantage as prices are trending higher on the daily chart, but just barely. Bulls need to show fresh power soon to keep their edge. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $1,801.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,721.10. First resistance is seen at $1,775.00 and then at $1,782.40. First support is seen at today’s low of $1,760.30 and then at $1,750.00. Wyckoff's Market Rating: 5.5
The silver bears have the overall near-term technical advantage. However, prices are is a fledgling uptrend. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at the overnight high of $23.495 and then at last week’s high of $24.645. Next support is seen at $23.00 and then at $22.75. Wyckoff's Market Rating: 4.0.