(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday, with gold hitting another record high and silver another 14-year high. Safe-have demand is featured as the U.S. government could shut down at mid-week. December gold was last up $48.00 at $3,856.80. December silver prices were up $0.574 at $47.23.
Global stocks were mixed to firmer overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins.
Top U.S. congressional leaders will meet with President Trump at the White House today to discuss a short-term spending bill ahead of the deadline to avoid a federal government shutdown on Wednesday. Democrats are insisting that the bill must include an extension of health-care subsidies and a restoration of budget cuts to health care. Republicans say negotiations for those issues can happen after averting a shutdown. The bill would only fund the government until mid-November and must pass before Oct 1. Republicans need at least some Democrats to back the short-term bill in the Senate. The U.S. dollar is under pressure to start the week, due to the government shutdown uncertainty. Trump has raised the stakes by threatening permanent dismissals of unfunded “non-essential” federal workers in the event of a shutdown, breaking with decades of precedent that has typically allowed furloughed employees to return after funding resumes.
In other news, OPEC-plus will likely raise its oil output again in November as the cartel continues its strategy to reclaim global market share, according to a Bloomberg report. The alliance will consider adding at least as much as the 137,000 barrel-a-day hike scheduled for October when it meets online Oct. 5. No final decision has been made yet, and deliberations could still evolve ahead of the meeting, said the Bloomberg report. Still, the planned October OPEC-plus hike is sharply lower than the increments the group announced in the two prior months, and delegates emphasized at the time that the actual supply boost would be even smaller because some countries lack the ability to increase. Nymex crude oil prices are under pressure to start the trading week, due in part to the OPEC news.
Global equities are likely to extend a rally into year- end, given a resilient U.S. economy, supportive stock valuations and a dovish pivot from the Federal Reserve, according to a report from Goldman Sachs. “Good earnings growth, Fed easing without a recession and global fiscal policy easing will continue to support equities,” Goldman wrote in a note. “With anchored recession risk, we would buy dips in equities into year-end.”
China’s ruling Communist Party will convene a closed-door meeting from Oct. 20 to 23 to review development plans for the next five years, the official Xinhua News Agency said on Monday, citing a meeting of the top decision body Politburo. The new blueprint for China’s 15th five-year plan, which covers 2026 to 2030, is closely monitored by investors and foreign leaders for signs of policymakers’ intent to rebalance the world’s second-largest economy toward consumption. U.S. Treasury Secretary Scott Bessent has urged Beijing to make boosting the Chinese consumer a pillar of its strategy for the next five years. The 24-member Politburo vowed to grow the economy by developing “new productive forces” that focus on scientific and technological innovation, deepen reform and expand opening up, according to the Xinhua report. It also repeated pledges to give support to the role of the market in allocating resources.
The key outside markets today see the U.S. dollar index modestly down, while crude oil prices are lower and trading around $64.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.15%.
U.S. economic data due for release today includes pending home sales and the Texas manufacturing outlook survey.
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 $4,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,700.00. First resistance is seen at $3,875.00 and then at $3,900.00. First support is seen at $3,800.00 and then at the overnight week’s low of $3,785.50. Wyckoff's Market Rating: 9.5.
December silver futures bulls have the strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $50.00. The next downside price objective for the bears is closing prices below solid support at $44.00. First resistance is seen at $47.50 and then at $48.00. Next support is seen at the overnight low of $46.27 and then at $46.00. Wyckoff's Market Rating: 9.5.
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