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Price pressure on gold, silver amid bearish outside markets

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(Kitco News) - Gold and silver prices are modestly down in early U.S. trading Monday amid a firmer U.S. dollar index and lower crude oil prices to start the last trading week of 2021. Gains are also being squelched by less risk aversion in the marketplace. February gold was last down $3.90 at $1,807.70 and March Comex silver was last down $0.175 at $22.765 an ounce.

Global stock markets were mostly weaker overnight in quieter, post-holiday trading. Some markets overseas remained closed for the Christmas holiday. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.

There are still coronavirus worries, but there are also vaccines and drugs coming on line to battle the virus. One market analyst termed the marketplace’s present attitude regarding the coronavirus battle, “serious but manageable.”

Simmering on the back burner of the marketplace is a potential geopolitical crisis, as Russia’s troop buildup on the Ukrainian border has alarmed the U.S. and Europe.  

The key “outside markets” today see Nymex crude oil prices lower and trading around $73.00 a barrel. The U.S. dollar index is slightly up early today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.481%.

U.S. economic data due for release Monday is light and includes the Texas manufacturing outlook survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,840.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at the overnight high of $1,813.00 and then at the December high of $1,815.70. First support is seen at $1,800.00 and then at last week’s low of $1,785.00. Wyckoff's Market Rating: 6.0.

Live 24 hours silver chart [ Kitco Inc. ]

The March silver bears have the overall near-term technical advantage. Recent price action does suggest a market bottom is in place. 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 $21.00. First resistance is seen at the overnight high of $23.025 and then at $23.25. Next support is seen at $22.44 and then at last week’s low of $22.185. Wyckoff's Market Rating: 3.0.
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.