(Kitco News) - Gold prices are lower in quieter, pre-holiday midday U.S. trading Monday. The yellow metal is being pushed down by solid gains in the U.S. dollar index and an uptick in U.S. Treasury yields to start a holiday-shortened trading week. Silver prices are higher on short covering in the futures market. February gold was last down $12.70 at $2,632.10 and March silver was up $0.312 at $30.27.
U.S. stock indexes are mixed at midday. It’s likely to be a quieter trading week in all the markets as the Christmas holiday falls on Wednesday.
The U.S. marketplace has a bit more risk appetite early this week after last Friday’s U.S. PCE inflation data came in a bit cooler than expected following the Fed’s hawkish pivot on future U.S. monetary policy at last week’s FOMC meeting.
Also, the U.S. stock and financial markets were relieved the U.S. Congress averted a federal government shutdown late last week and agreed to a continuing resolution to keep the government funded until March.
The key outside markets today see the U.S. dollar index solidly higher and not far below last week’s two-year high. Nymex crude oil futures prices are down and trading around $68.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.562%.
Technically, February gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $2,565.00. First resistance is seen at the overnight high of $2,646.80 and then at Friday’s high of $2,653.80. First support is seen at the overnight low of $2,623.20 and then at $2,600.00. Wyckoff's Market Rating: 5.0.
March silver futures bears have the overall near-term technical advantage. A two-month-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at the August low of $27.39. First resistance is seen at $30.50 and then at $31.00. Next support is seen at $30.00 and then at $29.50. Wyckoff's Market Rating: 3.5.
(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
