(Kitco News) - Gold and silver prices are modestly up in early U.S. trading Monday, as the bulls have stabilized prices, which is friendly for both markets. The precious metals trades are awaiting a fresh fundamental catalyst to ignite trending price action. December gold was last up $19.80 at $4,016.60. December silver prices were up $0.27 at $48.42.
Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed to higher when the New York day session begins.
In overnight news, China is scrapping a long-standing gold tax incentive, which will no longer allow retailers to offset a value-added tax when selling gold. The rule covers both investment products, such as high-purity gold bars and ingots, and non-investment uses including jewelry and industrial materials. The move is expected to bolster government revenue but will also likely increase the cost of buying gold for Chinese consumers.
The U.S. is expected to suspend port fees for a year on China-linked vessels starting next week, Bloomberg reports, as the two countries deescalate a maritime contest that had become a sticking point in the trade war. From Nov. 10, the U.S. will pause measures designed to combat China’s shipping dominance, the White House said in a fact sheet. Meanwhile, Beijing said it would suspend the countermeasures it imposed in retaliation. During the one-year suspension, the U.S. will negotiate with China over the findings of its probe into China’s lead in maritime industries, according to the fact sheet. The U.S. will also pursue shipbuilding opportunities with South Korea and Japan, two countries often seen as a counterweight to Chinese ships.
OPEC-plus will pause its collective crude oil output increases during the first quarter of 2026 after making another modest hike next month as the group balances its push for market share against signs of an emerging surplus, Bloomberg reported. “The pause from January to March reflects an expectation for a seasonal slowdown and comes during a period of uncertainty for oil traders due to sanctions on Russia and a potential glut. The decision to pause output increases is seen as a prudent one given the supply picture uncertainty for the first quarter, with OPEC+ taking a break from adding barrels for the first time since they began restoring halted supplies in April,” said the Bloomberg report.
The key outside markets today see the U.S. dollar index slightly up. Crude oil prices are weaker and trading around $60.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.09%.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, December gold futures bulls’ next upside price objective is to produce a close above solid resistance at $4,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,800.00. First resistance is seen at the overnight high of $4,038.70 and then at Friday’s high of $4,059.90. First support is seen at $4,000.00 and then at $3,950.00. Wyckoff's Market Rating: 6.0.
December silver futures 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 $49.00 and then at $49.225. Next support is seen at $48.00 and then at $47.50. Wyckoff's Market Rating: 6.0.
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