(Kitco News) - Gold and silver prices are a bit lower in early U.S. trading Monday. Some mild profit taking from the shorter-term futures traders is featured on this last trading day of the month and of the quarter. Still, safe-haven demand amid geopolitical worries is keeping a floor under the two precious metals markets. December gold was last down $7.40 at $2,660.70 and December silver was down $0.261 at $31.555.
Focus of the marketplace remains on the escalating Israel-Hezbollah military conflict, with Israel over the weekend killing Hezbollah’s top leader. Isreal the past week has taken out many of the group’s top commanders. So far, Iran is staying out of direct conflict with Israel. However, this situation is very fluid and is keeping safe-haven bids in gold and silver, and will likely get worse before it gets better.
China officials over the weekend induced more economic stimulus into the world’s second-largest economy by ordering lending institutions to lower mortgage rates for consumers with existing loans. China’s economy is listing but the property sector has been especially anemic. China’s stock markets and many of its raw commodity markets rallied on the news. Much of China will be closed this week for a public holiday.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to weaker openings when the New York day session begins. The S&P 500 last week hit a record high, while the Nasdaq stock index scored a nine-week high. The U.S. stock indexes made it through in good shape what history has shown can be a historically rocky month of September. However, October now looms, which can be rough on stock and financial markets, too.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are a bit firmer and trading around $68.25 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.76%.
U.S. economic data due for release Monday includes the Chicago ISM business survey and the Texas manufacturing outlook survey.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at the overnight high of $2,687.70 and then at the contract high of $2,708.70. First support is seen at $2,650.00 and then at $2,635.00. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the firm overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at the overnight high of $32.15. Next support is seen at the overnight low of $31.315 and then at $31.00. Wyckoff's Market Rating: 7.0.
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