(Kitco News) - Gold has lost its earlier gains that pushed prices to a three-week highs, as the shorter-term futures traders are taking some profits after the price surge on Monday and overnight. Silver prices are holding modest gains but are well down from their earlier highs. December gold was last down $8.90 at $4,113.10. December silver prices were up $0.229 at $50.54.
Gold and silver saw support early this week as U.S. lawmakers likely have deal to end the longest government shutdown in U.S. history. A restart of the government would see the release of long-delayed U.S. economic data, which is expected to show a worsening outlook and likely be a catalyst for more Fed easing of its monetary policy as soon as the December FOMC meeting. Lower interest U.S. interest rates are bullish for the precious metals, suggesting better global demand for the metals, as well as suggesting the U.S. dollar could depreciate on the foreign exchange market. Gold remains on track for its best annual performance since 1979. Gold and silver prices hit all-time record highs in October.
The National Federation of Independent Businesses (NFIB) reports its Small Business Optimism Index in the U.S. fell to 98.2 in October 2025, the lowest in six months, from 98.8 in September and compared to forecasts of 98.3. "Optimism among small businesses declined slightly as owners report lower sales and reduced profits. Additionally, many firms are still navigating a labor shortage and want to hire but are having difficulty doing so, with labor quality being the top issue for Main Street," NFIB Chief Economist Bill Dunkelberg said. Meanwhile, 32% of all small business owners reported job openings they could not fill, unchanged for the second consecutive month. This is also price-friendly for the metals markets, as it suggests the Fed will indeed cut interest rates next months.
The key outside markets today see the U.S. dollar index lower. Crude oil prices are higher and trading around $61.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
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 $4,200.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at today’s high of $4,155.00 and then at $4,175.00. First support is seen at $4,100.00 and then at $4,050.00. Wyckoff's Market Rating: 7.0.
December silver futures bulls have the firm overall near-term technical advantage and their next upside price objective is closing prices above solid technical resistance at the record high of $53.765. The next downside price objective for the bears is closing prices below solid support at this week’s low of $48.235. First resistance is seen at today’s high of $51.10 and then at $51.50. Next support is seen at $50.00 and then at $49.00. Wyckoff's Market Rating: 7.5.
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