(Kitco News) - Gold and silver prices are posting gains in early U.S. trading Monday. The precious metals bulls are getting support from ideas of a dovish Federal Reserve following last Friday’s downbeat U.S. jobs report. Gains in gold and silver are being limited today by a solidly higher U.S. dollar index. December gold was last up $4.30 at $2,528.90 and December silver was up $0.332 at $28.14.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to solidly higher openings when the New York day session begins. The U.S. stock index bulls are working to recover last Friday’s losses following weaker-than-expected U.S. jobs growth in last Friday’s monthly employment report that once again raised fears of a U.S. economic recession.
In overnight news, China got some weaker inflation numbers in August. China’s consumer price index in August rose 0.6%, year-on-year, versus a rise of 0.5% in July and expectations for a rise of 0.7% in August. China’s August producer price index fell 1.8%, year-on-year, following a 0.8% decline in July. The markets expected a decline of 1.5% in August.
The U.S. data point of the week is Wednesday’s consumer price index for August, which is seen coming in at up 2.6%, year-on-year, following the 2.9% rise seen in the July report. The “core” CPI (excluding food and energy) for August is seen up 3.2% annually, compared to a rise of 3.2% in the July report. The U.S. producer price index report is out Thursday.
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil prices are firmer and trading around $68.25 a barrel. Oil traders are watching a storm brewing in the Gulf of Mexico that could turn into a hurricane. The benchmark 10-year U.S. Treasury note is presently fetching 3.742%.
U.S. economic data due out Monday includes the employment trends index, and the monthly wholesale trade.
Technically, December gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,570.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,475.00. First resistance is seen at $2,540.00 and then at $2,550.00. First support is seen at the overnight low of $2,514.20 and then at the September low of $2,502.70. Wyckoff's Market Rating: 8.0.
December silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at the August low of $26.885. First resistance is seen at $29.00 and then at $29.55. Next support is seen at $28.00 and then at $27.50. Wyckoff's Market Rating: 5.0
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