(Kitco News) - Gold and silver prices are not straying too far from unchanged in midday U.S. trading Monday. Traders bought the earlier price dips after both metals’ traded lower following the weekend attack by Israel on Iran that was deemed as being an attempt at de-escalation between the two countries. December gold was last down $1.90 at $2,752.70 and December silver was up $0.046 at $33.83.
The feature in the marketplace to start the trading week is sharply lower crude oil prices, on ideas the Israel-Iran military exchanges have ended following surgical strikes by Israel against Iran Saturday. No oil Iranian oil installations or nuclear facilities were targeted by Isreal. Both countries have now given hints their direct military actions against each other have come to an end. Nymex crude oil prices were last down $3.89 a barrel at $67.27. The notions of a de-escalation in Middle East violence have modestly pressured the gold and silver markets. However, veteran market watchers know the Middle East is never far away from becoming a powder keg.
The gold market remains supported on safe-haven demand ahead of major U.S. economic data later this week that sees the Labor Department’s October employment situation report, and ahead of next week’s U.S. presidential election and all the uncertainty surrounding it.
U.S. stock indexes are higher at midday. Reads a Wall Street Journal headline today: “Stocks look to extend record run.” Rallying stock markets are a bearish element for the safe-haven metals, from a competing asset class perspective.
The other key outside markets today see the U.S. dollar index slightly down. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.290%. U.S. bond yields have been on the rise recently despite the Federal Reserve lowering interest rates. A Wall Street Journal headline today reads: “Economists warn of new inflation hazards after election.” The story said both candidates Trump and Harris have laid out initiatives that could reignite inflation in the U.S.
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 today’s high of $2,758.30 and then at the contract high of $2,772.60. First support is seen at today’s low of $2,736.90 and then at last week’s low of $2,722.10. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the solid 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 $34.17 and then at $34.50. Next support is seen at last week’s low of $33.26 and then at $33.00. Wyckoff's Market Rating: 8.0.
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