(Kitco News) - Gold and silver prices are lower in midday U.S. trading Monday amid good gains in the U.S. dollar index to start the new trading week and month. Weaker crude oil prices are also a slight negative for the metals markets today. February gold was last down $19.60 at $2,661.80 and March silver was down $0.208 at $30.90.
Gold and silver have so far gotten no traction from French stocks selling off and government bonds under more pressure as that nation’s budget crisis deepens. The far-right National Rally said it could topple the government as soon as this week after the French finance minister said his administration would not be blackmailed. The U.S. dollar index is higher on safe-haven demand as the French crisis deepens, weighing on the Euro currency. Some veteran market watchers are worried the situation in France could highlight burdensome government debt in major economies and turn into a contagion at some point. Such would most likely be bullish for the safe-haven metals.
It’s a big U.S. data week, including the monthly jobs report Friday. Hiring likely jumped in November after hurricanes and a major strike undercut job growth a month earlier. U.S. non-farm payrolls likely rose by around 200,000 in November, according to a Bloomberg survey. On Wednesday, Fed Chair Jerome Powell participates in a panel discussion. The OECD will release new economic forecasts Wednesday. The OPEC oil cartel meets Thursday.
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil futures prices are down a bit and trading around $67.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
Technically, February gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,748.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at the overnight high of $2,678.50 and then at Friday’s high of $2,690.50. First support is seen at $2,650.00 and then at the overnight low of $2,644.50. Wyckoff's Market Rating: 6.0.
March 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 $32.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $31.135 and then at Friday’s high of $31.375. Next support is seen at the overnight low of $30.51 and then at $30.00. Wyckoff's Market Rating: 5.0
(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
