(Kitco News) - Gold and silver prices are weaker in early U.S. trading Monday, on modest profit-taking pressure from the shorter-term futures traders after recent gains. December gold was last down $6.60 at $3,680.00. December silver prices were down $0.155 at $42.675.
Global stocks were mixed overnight. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins.
In overnight news, U.S. and Chinese trade officials discussed TikTok, trade and the global economy during high-level talks held in Madrid, Spain Sunday. China said over the weekend it is launching a probe into U.S. semiconductors, saying Nvidia violated anti-monopoly laws. The talks, expected to continue today, included national security issues and the status of ByteDance Ltd.'s TikTok, which faces a deadline to reach a deal to continue operations in the U.S. Officials also expected to lay the groundwork for a potential meeting between Donald Trump and Xi Jinping as soon as October, when they're scheduled to attend a summit in South Korea. A U.S. delegation headed by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer and a Chinese group led by Vice Premier He Lifeng met for almost six hours on Sunday, reports said.
Fitch Ratings over the weekend downgraded France's government credit assessment to A+ from AA-, citing the country's rising public indebtedness and political instability. The downgrade comes after the collapse of another French government and amid a battle to contain a bulging debt burden, with Fitch warning that the run-up to the presidential election in 2027 will further limit the scope for fiscal consolidation. Fitch expects France's fiscal deficits to remain above 5% of GDP in 2026-2027 and assumes upcoming budget negotiations will produce a more diluted fiscal consolidation package than previously proposed.
China’s industrial production rose 5.2% annually in August, slowing from 5.7% growth in July and missing trade forecasts of up 5.8%. This was the weakest growth in a year and driven by slower output in manufacturing and utilities. Meanwhile, China’s retail sales grew 3.4% annually, short of market expectations of up 3.8%, as a boost from the consumer trade-in program has faded.
Global markets await the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is expected to deliver a 25-basis point rate cut, the first since November of 2024. The decision comes amid criticism that the Fed has been slow to react to softening U.S. economic data, including a major payroll revision and tariff-driven inflation. Updated Fed projections may show slower growth and rising unemployment, while Chair Jerome Powell is set to face pointed questioning at his post-meeting press conference.
The key outside markets today see the U.S. dollar index modestly weaker, while crude oil prices are near steady and trading around $62.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.06%.
U.S. economic data due for release Monday includes the Empire State manufacturing survey. The U.S. data release pace picks up strongly on Tuesday.
Technically, December gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,550.00. First resistance is seen at $3,700.00 and then at this week’s contract high of $3,715.20. First support is seen at the overnight low of $3,662.80 and then at $3,650.00. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the strong overall near-term technical advantage. A bull flag or pennant pattern has formed on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $40.00. First resistance is seen at last week’s high of $43.04 and then at $43.50. Next support is seen at $42.00 and then at last week’s low of $41.08. Wyckoff's Market Rating: 8.5.
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