(Kitco News) - Gold prices are strongly higher and silver is posting solid gains in midday U.S. trading Monday. Safe-haven buying, perceived bargain hunting after recent selling pressure, and short covering from the shorter-term futures traders are featured to start the trading week. December gold was last up $44.40 at $2,615.00 and December silver was up $0.863 at $31.30.
Gold and silver bulls stepped up to the plate on the long side after U.S. President Biden authorized Ukraine to strike Russia using U.S.-supplied long-range missiles. The decision will allow for attacks farther inside Russia and comes just after news Russian President Putin has positioned North Korean troops along Ukraine’s northern border to try to reclaim territory seized by Ukrainian forces. This has put keener uncertainty into this major geopolitical event.
Bloomberg reports Goldman Sachs has named gold as one of its top commodity trades for next year, with an upside target of $3,000 an ounce by December of 2025. Goldman cited the uncertainty regarding the new Trump presidency and hit policies.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are solidly up and trading around $69.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.45%.
Technically, December gold bears still have the slight overall near-term technical advantage. Prices are still trending down on the daily bar chart. 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 last week’s low of $2,541.50. First resistance is seen at today’s high of $2,619.50 and then at $2,633.40. First support is seen at $2,600.00 and then at $2,575.00. Wyckoff's Market Rating: 4.5.
December silver futures bears have the slight overall near-term technical advantage. Prices are still trending 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 today’s high of $31.255 and then at last week’s high of $31.66. Next support is seen at the overnight low of $30.35 and then at $30.00. Wyckoff's Market Rating: 4.5.
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