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Gold price weaker amid bearish outside markets

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(Kitco News) - Gold prices are modestly lower in early U.S. trading Monday. Silver prices are slightly up. The precious metals are once again being constrained by a higher U.S. dollar index. Lower crude oil prices to start the trading week are also negative for the metals. December gold was last down $3.00 at $1,653.40 and December silver was up $0.099 at $19.17.

Global stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down. U.S. stock indexes are pointed to firmer openings when the New York day session begins, following solid gains Friday that came after a Wall Street Journal report suggested the Federal Reserve will slow down the pace of its monetary policy tightening after its November meeting, at which the Fed is expected to raise the Fed funds rate another 0.75%. Stock and financial market bulls are hoping that's the "Fed pivot" they have been awaiting. There has been scattered talk in the marketplace that certain sectors of financial markets have become strained and much less liquid due to central banks aggressively tightening their monetary policies. It will be another busy week for corporate earnings reports this week.

Asian stock markets sold off as China's President Xi Jinping tightened his grip on the world's second-largest economy, following China's major communist party meeting. It's likely Xi will continue China's "zero Covid" policy, which has constrained China's economy.

The Euro zone got more weak purchasing managers' data for October. The composite purchasing managers' index (PMI) for October came in at 47.1 from 48.1 in September. A reading below 50.0 represents contraction in the sector.

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The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are lower and trading around $83.25 a barrel. The 10-year U.S. Treasury note is presently yielding 4.177%.

U.S. economic data due for release Monday includes the Chicago Fed national activity index and the U.S. flash and services purchasing managers' indexes.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bears have the solid overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at the overnight high of $1,675.50 and then at $1,685.00. First support is seen at the overnight low of $1,648.40 and then at $1,630.00. Wyckoff's Market Rating: 1.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the firm overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at today's high of $19.675 and then at $20.00. Next support is seen at $19.00 and then at $18.65. Wyckoff's Market Rating: 2.5.

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.