(Kitco News) - Gold and silver prices are modestly higher in subdued early U.S. trading Monday, as the biggest markets-events week of the year is now unfolding. December gold was last up $4.90 at $2,754.10 and December silver was up $0.134 at $32.815.
The marketplace is quieter early this week as it appears many traders and investors are holding off on placing bigger trades until after the U.S. presidential election Tuesday. However, many believe the election’s final result may not be known soon after polls close due to a very close presidential race. An Iowa poll released over the weekend showed a surprising lead by Kamala Harris. That poll threw a curve ball at the “Trump trades” that had been recently placed in belief that Donald Trump would win the election.
Also on tap this week is the FOMC meeting of the Federal Reserve. The meeting starts Tuesday morning and ends Wednesday afternoon with the FOMC statement and press conference from Fed Chair Powell. Most believe the Fed will cut its main interest rate by 0.25%, especially after a weaker U.S. employment report released last Friday.
China’s parliament, the standing committee of the National People’s Congress has begun a week-long meeting that ends Friday. Traders and investors are hoping that there will be an announcement detailing the size and scope “of much-promised, but so far not delivered, fiscal stimulus. It’s understood that Chinese policymakers will want to take into account the result of the U.S. presidential election,” said David Morrison of Trade Nation.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins. The U.S. stock indexes have backed off their recent highs and the bulls have faded a bit.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are solidly higher and trading around $71.50 a barrel. The OPEC oil cartel has extended its production cuts. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.307%.
U.S. economic data due for release Monday includes the employment trends index, the global manufacturing purchasing managers’ index, and manufacturers’ shipments and inventories.
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 $2,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,675.00. First resistance is seen at Friday’s high of $2,772.40 and then at $2,800.00. First support is seen at the overnight low of $2,739.40 and then at $2,722.10. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the overall near-term technical advantage but have faded a bit. A three-month-old uptrend on the daily bar chart is now in some jeopardy. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October high of $35.07. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.00 and then at $33.25. Next support is seen at the overnight low of $32.415 and then at $32.00. Wyckoff's Market Rating: 7.0.
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