(Kitco News) - Gold and silver prices are sharply lower, with gold strongly down and hitting a four-week low, in midday U.S. trading Monday. A surge in the U.S. dollar index to a 4.5-month high, solidly lower crude oil prices and rising U.S. Treasury yields are all bearish outside-market elements working against the metals markets today. Also featured is technical selling pressure and more profit taking from the shorter-term futures traders. Metals traders are also concerned about less demand coming out of China. December gold was last down $74.70 at $2,620.10 and December silver was down $0.814 at $30.635.
U.S. stock indexes are mixed at midday but hit record highs early on. That’s also bearish for the precious metals, from a competing asset class perspective. Today is the U.S. Veterans Day holiday and the U.S. government and Treasury markets are closed. Other markets will operate under normal hours today.
In overnight news, Bloomberg reports hedge fund BlackRock and investment bank JPMorgan “are among the big names warning the sell-off in U.S. bonds is probably far from over. Trump’s fiscal plans may rekindle inflation and increase the budget deficit, while traders have pared bets for how deeply the Federal Reserve will cut interest rates,” said the report.
Meantime, Bitcoin prices rallied above $83,000 overnight, on hopes the crypto currency will become more integrated into the U.S. financial system under President Trump, who proclaims to be “crypto-friendly.”
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil futures prices are solidly lower and trading around $68.25 a barrel. A DowJones Newswires headline today reads: “Oil pressured by fading U.S. supply threats, Chinese stimulus disappointment.” The yield on the benchmark 10-year U.S. Treasury note is presently 4.304%.
There was no major U.S. economic data released Monday.
Technically, December gold bulls have lost their the overall near-term technical advantage for the first time in months. Bears are now working on a price downtrend on the daily bar chart. This suggests a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,550.00. First resistance is seen at $2,650.00 and then at $2,675.00. First support is seen at the October low of $2,618.80 and then at $2,600.00. Wyckoff's Market Rating: 5.0.
December silver futures bulls have also lost their overall near-term technical advantage as prices are starting to trend down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.50. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at $31.00 and then at the overnight high of $31.66. Next support is seen at today’s low of $30.53 and then at $30.00. Wyckoff's Market Rating: 5.0.
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