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Gold price weaker as trader/investor risk aversion recedes

Kitco News

(Kitco News) - Gold and silver prices are down a bit in early U.S. trading Monday and seeing some pressure as trader and investor risk appetite has up-ticked recently, as seen by last week's solid rally in the U.S. stock indexes. December gold was last down $8.10 at $1,991.10. December silver was last down $0.035 at $23.25.

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Asian and European markets were mostly higher in overnight trading. U.S. stock indexes are pointed toward slightly higher openings after posting solid gains last week. There have been no major, unexpected developments, markets-wise, on the Israel-Hamas war front for some time—namely other countries getting seriously involved in the conflict. That has lifted marketplace spirits a bit and has allowed traders and investors to focus on and react to more normal market fundamentals. That's also pulling safe-haven bidding away from the gold and silver markets—at least right now.

In overnight news, Bank of Japan governor Ueda said the BOJ will continue its monetary policy easing and yield-curve control policy. He also said he did not think the Japanese government 10-year note yield would stay significantly above 1.0%. That compares to the U.S. Treasury 10-year note yield of around 4.5%. Ueda's comments were music to the ears of the foreign exchange and financial markets traders who are and have been executing the U.S.-Japan interest rate differential or "carry" trades.

Gold lacks the juice to break through $2,000 next week, but analysts don't recommend shorting it

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are higher and trading around $81.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.593%.

U.S. economic data due for release Monday includes the employment trends index and the global services purchasing managers index (PMI).

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the near-term technical advantage. Prices are trending higher on the daily bar chart. Bulls' next upside price objective is to produce a close in December futures above solid resistance at $2,050.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at $2,000.00 and then at $2,010.00. First support is seen at $1,985.00 and then at last week's low of $1,978.20. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.50 and then at $23.88. Next support is seen at $23.00 and then at $22.565. Wyckoff's Market Rating: 5.5.

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.