(Kitco News) - Gold and silver prices are lower in early U.S. trading Monday, with gold hovering just above last week’s nearly 2.5-year low. A stronger U.S. dollar index and rising bond yields are pressuring the precious metals to start the trading week. As has been the case for quite some time, traders and investors appear to be favoring the perceived safe-haven greenback and U.S. Treasuries over the precious metals. October gold was last down $12.80 at $1,659.80 and December silver was down $0.056 at $19.325.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed to lower openings and at or near two-month lows when the New York day session begins. Traders and investors remain jittery to start the trading week, amid fears of a U.S. and/or global recession. Marketplace focus is on this week’s FOMC meeting that begins Tuesday and ends Wednesday afternoon. The FOMC is generally expected to raise the key U.S. Fed funds rate by 0.75% in the Fed’s effort to tamp down problematic price inflation. However, there is scattered talk the Fed could do a full 1.0 percent rate hike. One investment bank’s research team said the Fed raising 100 basis points is possible but not likely. The Bank of England also holds its monetary policy meeting later this week.
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The key outside markets today see Nymex crude oil prices lower and trading around $82.75 a barrel. The U.S. dollar index is firmer in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 3.5%. The 2-year U.S. Treasury note yield climbed to 3.927%. The inverted 2-year/10-year yield curve is one clue of impending U.S. economic recession.
U.S. economic data due for release Monday is light and includes the NAHB housing market index.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the October gold futures bears have the solid overall near-term technical advantage. Prices are in a downtrend on the daily bar chart. 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 $1,678.00 and then at $1,686.30. First support is seen at last week’s low of $1,651.90 and then at $1,650.00. Wyckoff's Market Rating: 1.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
September silver futures bears have the overall near-term technical advantage. 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 $18.00. First resistance is seen at the overnight high of $19.69 and then at $20.00. Next support is seen at $19.00 and then at $18.77. Wyckoff's Market Rating: 2.5.
