(Kitco News) - Gold and silver prices are higher in morning U.S. trading Monday, on upside price corrections following the strong losses posted Monday. A weaker U.S. dollar index and an down-tick in U.S. Treasury yields early this week are working in favor of the precious metals market bulls. However, risk appetite is keener this week, which is bearish for the safe-haven metals. December gold was last up $20.90 at $2,639.40 and December silver was up $0.416 at $30.655.
There are growing reports that Israel and Hamas may be close to a ceasefire agreement. That helped to prompt heavy profit taking and weak long liquidation in the gold and silver futures markets Monday. There is also talk in the marketplace that incoming President Trump will be able to broker a ceasefire deal with Russia and Ukraine. These two possibilities are putting risk appetite back into the marketplace at present.
Asian and European stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward mostly higher openings when the New York day session begins. Stock markets overseas were upset when President-elect Donald Trump late Monday made his first specific threats on trade tariffs--announcing an additional 10% tariff on goods from China and 25% on products from Mexico and Canada. European and Asian stocks fell on the news. A Bloomberg news headline today reads: “Tariff man is back.”
The key outside markets today see the U.S. dollar index slightly lower on a continued corrective pullback after hitting a two-year high last Friday. Nymex crude oil futures prices are firmer and trading around $69.75 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently 4.28%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the monthly house price index, the Richmond Fed business survey, the consumer confidence index and new residential sales.
Technically, December gold bulls and bears are on a level overall near-term technical playing field. Prices Monday scored 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 this week’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 $2,650.00 and then at $2,675.00. First support is seen at $2,625.00 and then at today’s low of $2,605.30. 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 last week’s high of $31.615. Next support is seen at $30.00 and then at $29.75. Wyckoff's Market Rating: 4.5.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
