(Kitco News) - Gold and silver prices are strongly lower in morning U.S. trading Monday, on an uptick in investor risk appetite and heavy profit-taking pressure from the shorter-term futures traders. December gold was last down $70.00 at $2,642.20 and December silver was down $0.948 at $30.39.
The U.S. general marketplace is more upbeat to start the U.S.-Thanksgiving-holiday-shortened trading week and that’s a negative for the safe-haven metals. There are reports Israel and Hamas may be close to a ceasefire agreement. The better risk appetite is also 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—also a negative for the safe-haven metals.
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 solidly lower on a corrective pullback after hitting a two-year high Friday. Nymex crude oil futures prices are lower and trading around $70.00 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
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 quickly lost their slight overall near-term technical advantage. Prices are scoring a big and bearish “outside day” down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at today’s high of $2,723.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at $2,675.00 and then at $2,700.00. First support is seen at today’s low of $2,647.20 and then at $2,618.80. Wyckoff's Market Rating: 5.0.
December silver futures bears have the slight overall near-term technical advantage. Bears are working to restart a price downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. 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 $31.00 and then at today’s high of $31.545. Next support is seen at today’s low of $30.32 and then at $30.00. Wyckoff's Market Rating: 4.5.
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