(Kitco News) - Gold prices are modestly higher in midday U.S. trading Monday after hitting another record high early on, at $2,755.40, basis December Comex futures. Silver futures prices are solidly up and notched a 12-year high today. Safe-haven demand, worries about “de-dollarization” and bullish technicals continue to push both precious metals prices higher. December gold was last up $3.20 at $2,733.20 and December silver was up $0.646 at $33.885.
Both precious metals did back down from their daily highs today, as the U.S. dollar index rallied and U.S. Treasury yields also up-ticked. Profit-taking from the shorter-term futures traders is featured.
The recent rallies in gold and silver come as Russia hosts the BRIC summit Tuesday, attended by China’s Xi Jinping and other developing nations’ officials. Russian President Putin wants a new global financial payments system to counter U.S. dollar dominance of global foreign reserves. Around 58% of central bank foreign-reserve currencies currently are in dollar-denominated assets. Gold stands to benefit from more “de-dollarization” by BRICS and other countries.
In other overnight news, China announced slightly bigger-than-expected cuts to both its one-year and five-year prime loan rates. Still, Chinese authorities have failed to meet market expectations when it comes to fiscal stimulus. “Investors have lived on hope, but suffered only disappointment since last month when there were assurances that money would be forthcoming to help shore up China’s troubled property market,” said broker SP Angel.
The key outside markets today see the U.S. dollar index higher. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.174%. Crude oil prices are higher and trading around $70.75 a barrel.
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 $2,650.00. First resistance is seen at the record high of $2,755.40 and then at $2,775.00. First support is seen at $2,708.70 and then at $2,700.00. Wyckoff's Market Rating: 9.5.
December silver futures bulls have the strong overall near-term technical advantage. Prices are in an accelerating 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at today’s high of $34.485 and then at $35.00. Next support is seen at the overnight low of $33.66 and then at $33.225. Wyckoff's Market Rating: 9.0
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
