(Kitco News) - Gold and silver prices are solidly higher near midday 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 $47.00 at $3,855.80. December silver prices were up $0.434 at $47.09.
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.
The key outside markets today see the U.S. dollar index lower, while crude oil prices are sharply down and trading around $63.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.15%.
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.
(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, Gold prices are sharply up in early U.S. trading Monday and hit another record high. Silver prices are also up and notched another 14-year high. The powerful but mature bull market runs in gold and silver are accelerating. That’s one early clue that from a time perspective, major market tops could come sooner rather than later. However, from a price perspective, there still could be much more room on the upside for gold and silver prices during this acceleration phase of the mature bull markets, before they peter out for a while. December gold was last up $40.80 at $3,815.90. December silver prices were up $0.361 at $44.575.
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