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Gold price modestly up, but holding Friday's strong gains

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(Kitco News) - Gold prices are slightly higher in early U.S. trading Monday, but importantly are holding Friday's strong gains that included a technically bullish weekly high close that is one chart clue that a market bottom is in place. Silver prices are slightly down but the bulls are in good shape following recent gains. A weaker U.S. dollar index is a bullish daily factor for the metals markets to start the trading week. December gold was last up $1.90 at $1,678.30 and December silver was down $0.074 at $20.71.

Global stock markets were mostly higher overnight. U.S. stock indexes are headed for higher openings when the New York day session begins. It will be another busy week of corporate earnings reports.

The U.S. mid-term elections on Tuesday will be a focus for the marketplace this week.

In overnight news, China's exports in October fell 0.3%, year-on-year, the worst performance since May of 2020. China's imports were down 0.7% in the same period. Over the weekend Chinese health officials said the are sticking with their "zero-Covid" policies despite widespread rumors to the contrary.

Gold prices up 2% as a key recession gauge hits a 40-year high

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are weaker and trading around $91.50 a barrel. The 10-year U.S. Treasury note is yielding 4.144%.

U.S. economic data due for release Monday includes the employment trends index and consumer credit.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bears have the overall near-term technical advantage. However, recent choppy and sideways price action suggests a market bottom is in place. 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 last week's high of $1,686.40 and then at $1,700.00. First support is seen at the overnight low of $1,670.00 and then at $1,650.00. Wyckoff's Market Rating: 2.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. A choppy, nine-week-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $21.31. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at the overnight high of $20.86 and then at $21.00. Next support is seen at the overnight low of $20.435 and then at $20.00. Wyckoff's Market Rating: 6.0.

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.