(Kitco News) - Gold prices are lower in early U.S. trading Monday, on a corrective pullback from recent solid gains and some profit-taking from the shorter-term futures traders. Silver prices are also down to start the trading week. December gold was last down $23.70 at $2,688.50 and December silver was down $0.443 at $30.895.
The U.S. general marketplace is a bit more upbeat to start the U.S.-Thanksgiving-holiday-shortened trading week and that’s a negative for the safe-haven metals. The better risk appetite is partly due to President-elect Trump picking hedge fund manager Scott Bessent for Treasury secretary. As one market watcher put it, the U.S. financial system is in “safe hands” with Bessent the head of the U.S. Treasury. Bessent will have a tough new job, as a Wall Street Journal story today is headlined: “Markets shine spotlight on deficits.” That’s one reason U.S. Treasury yields have risen the past several weeks.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
In other news, China’s central bank kept its monetary policy unchanged at the People’s Bank of China latest monetary policy meeting.
The key outside markets today see the U.S. dollar index lower on a corrective pullback after hitting a two-year high Friday. Nymex crude oil futures prices are near steady and trading around $70.25 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently 4.338%.
U.S. economic data due for release Monday includes the Chicago Fed national activity index and the Texas manufacturing survey.
Technically, December gold bulls have the overall near-term technical advantage. Prices are starting to trend up again. Bulls’ next upside price objective is to produce a close above solid resistance at $2,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,618.80. First resistance is seen at $2,700.00 and then at the overnight high of $2,723.20. First support is seen at the overnight low of $2,660.00 and then at $2,650.00. Wyckoff's Market Rating: 6.0.
December silver futures bulls and bears are on a level overall near-term technical playing field. 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 the November low of $29.75. First resistance is seen at last week’s high of $31.615 and then at $32.00. Next support is seen at the overnight low of $30.58 and then at $30.345. Wyckoff's Market Rating: 5.0.
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