(Kitco News) - Gold and silver prices are lower, with gold sharply down, in early U.S. trading Monday amid a surge in the U.S. dollar index to a 4.5-month high to start the trading week. 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 $34.50 at $2,660.30 and December silver was down $0.299 at $31.15.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to higher openings and record highs when the New York day session begins. 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 lower and trading around $69.00 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 is no major U.S. economic data due for release Monday.
Technically, December gold bulls have the overall near-term technical advantage but have faded. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,801.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the October low of $2,618.80. First resistance is seen at the overnight high of $2,693.40 and then at $2,700.00. First support is seen at last week’s low of $2,650.30 and then at $2,635.00. Wyckoff's Market Rating: 6.5.
December silver futures bulls still have the overall near-term technical advantage but have faded. A three-month-old uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.00. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen ats the overnight high of $31.66 and then at $32.00. Next support is seen at $31.00 and then at last week’s low of $30.94. Wyckoff's Market Rating: 6.0.
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