(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday, with gold sharply up and hitting a record high of $3,973.70, basis December Comex futures. Silver prices are modestly up and hit a 14-year high of $48.59. Platinum futures hit a 13-year high of $1,638.70, basis nearby futures. Steady safe-haven demand continues to be featured in the precious metals. December gold was last up $53.40 at $3,962.30. December silver prices were up $0.26 at $48.22.
The expected U.S. interest rate cuts yet this year and the prospect of a prolonged U.S. federal government shutdown have boosted trader and investor demand for precious metals. Gold prices are up around 50% this year. Gold-backed exchange-traded funds swelled again last week, with private investors contributing to the latest leg in the rally and total holdings expanding the most in more than three years last month, according to Bloomberg.
There are no signs the U.S. government shutdown is close to ending. U.S. House Republican leaders have told their members to stay away from Washington while the federal government is shut down. House Majority Whip Tom Emmer said House Republicans are ready to get back to work as soon as Chuck Schumer and Democrats in the Senate reopen the government, said Bloomberg in a report. “Prospects of a deal in the Senate anytime soon appear remote, with Senator Susan Collins saying it appears they're not getting close on reopening the government,” said Bloomberg.
Global stock markets were mixed overnight. U.S. stock indexes are set to open higher and near record highs when the New York day session begins.
In other news, France’s markets tumbled today after the sudden resignation of French Prime Minister Sebastien Lecornu, with investors speculating that fresh elections are inevitable to solve the political crisis. The resignation is the latest step in a long-running political crisis in France, which has prompted the downfall of a number of prime ministers and roiled the nation’s assets. European stock markets sold off today and France’s stock market posted solid losses. The Euro currency sunk on the news. France’s credit rating has twice been downgraded since Lecornu took office, with Moody's and S&P scheduled to next update their ratings on Oct. 24 and Nov. 28, respectively.
Crude oil prices rallied after the OPEC-plus oil cartel agreed to raise its collective production by a modest amount, following some traders’ fears of a much larger increase. The Organization of the Petroleum Exporting Countries and partners backed a 137,000-barrel-a-day increase in production, well below some of the possible figures bandied about before the decision. Crude has fallen this year on concern worldwide output will top demand over the next few months, with the International Energy Agency forecasting a record annual surplus for 2026.
The key outside markets today see the U.S. dollar index sharply up, while crude oil prices are firmer and trading around $61.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.16%.
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 $3,750.00. First resistance is seen at today’s record high of $3,973.70 and then at $4,000.00. First support is seen at $3,925.00 and then at $3,900.00. 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 $45.00. First resistance is seen at the overnight high of $48.59 and then at $49.00. Next support is seen at $47.50 and then at $47.00. Wyckoff's Market Rating: 9.0.
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