(Kitco News) - Gold and silver prices are lower in early U.S. trading Monday, seeing some selling pressure from solid gains in the U.S. dollar index to start the new trading week and month. February gold was last down $18.20 at $2,662.80 and March silver was down $0.268 at $30.84.
Asian and European stock markets were mixed overnight, with Asian markets mostly up and European markets mostly down. U.S. stock indexes are pointed toward weaker openings when the New York day session begins, after the S&P 500 stock index hit a record high Friday.
French stocks are selling off and government bonds came 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.
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 higher. Nymex crude oil futures prices are higher and trading around $68.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.212%.
U.S. economic data due for release Monday includes the U.S. manufacturing purchasing managers index (PMI), the ISM report on business manufacturing, construction spending, and the global manufacturing PMI.
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 $31.13 and then at Friday’s high of $31.375. Next support is seen at the overnight low of $30.095 and then at $30.00. Wyckoff's Market Rating: 5.0.
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