Price pressure on gold, silver; bulls need a spark

(Kitco News) - Gold and silver prices are moderately lower in early U.S. trading Monday. The precious metals bulls have lost momentum and need a fresh, positive fundamental development to revive their spirits. On this day, rising U.S. Treasury yields are trumping a lower U.S. dollar index and higher crude oil prices to keep the gold and silver buyers skittish. December gold was last down $10.00 at $1,974.70. December silver was last down $0.362 at $23.495.

Asian and European markets were mixed in overnight trading. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins. It will likely be a quieter trading week as the U.S. Thanksgiving holiday is on Thursday and Friday is typically one of the quietest U.S. trading days of the year.

The key outside markets today see the U.S. dollar index lower and hitting an 11-week low overnight. Nymex crude oil prices are higher and trading around $77.00 a barrel. Reports said OPEC is considering more oil-production cuts. The cartel will meet this coming weekend in Vienna. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.472%.

U.S. economic data due for release Monday is light and includes leading economic indicators.

Technically, the gold futures bulls have the slight overall near-term technical advantage. Bulls' next upside price objective is to produce a close in December futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,987.80 and then at last week's high of $1,996.40. First support is seen at the overnight low of $1,972.50 and then at $1,959.00. Wyckoff's Market Rating: 5.5

The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $21.925. First resistance is seen at the overnight high of $23.87 and then at $24.00. Next support is seen at $23.25 and then at $23.00. Wyckoff's Market Rating: 6.0.

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By

Jim Wyckoff

For Kitco News

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