(Kitco News) - Gold and silver prices are modestly lower on some normal profit-taking pressure from the shorter-term futures traders, following recent strong gains that pushed silver futures to a record high overnight. Gold hit a three-week high overnight. Technical buying has been featured this week as the near-term technical postures for gold and silver are firmly bullish. December gold was last down $5.90 at $4,207.70. December silver prices were down $0.437 at $53.02.
This week’s price gains in silver are around 12%. Supply concerns have also contributed to silver’s rally, with India’s wedding season under way and fears of potential U.S. tariffs on silver. Last week the U.S. Department of Interior added silver, copper, and metallurgical coal to its critical minerals list, highlighting their importance to the U.S. economy and national security.
U.S. President Trump overnight signed legislation to end the longest U.S. government shutdown in history, marking the conclusion of the 43-day closure. Trump’s signature means the government can begin to resume normal operations, with federal workers expected back on the job starting today. However, it could still take days or even weeks for federal workers to fully restart their operations and dig out of the backlog after being off their jobs since Oct. 1.
The key outside markets today see the U.S. dollar index solidly lower. Crude oil prices are firmer and trading around $59.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.07%.
Technically, December gold futures bulls’ next upside price objective is to produce a close above solid resistance at the record high of $4,398.00. 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 $4,250.00 and then at $4,300.00. First support is seen at the overnight low of $4,183.20 and then at $4,104.40. Wyckoff's Market Rating: 8.0.
December silver futures bulls have the strong overall near-term technical advantage and their next upside price objective is closing prices above solid technical resistance at $55.00. The next downside price objective for the bears is closing prices below solid support at $50.00. First resistance is seen at the overnight record high of $54.415 and then at $55.00. Next support is seen at today’s low of $52.555 and then at $52.00. Wyckoff's Market Rating: 8.5.
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