(Kitco News) - Gold and silver prices are down just a bit in early U.S. trading Monday, in a quieter start to a U.S.-holiday-shortened trading week. Global stock market volatility receded today. Gold and silver traders are likely to take their daily cues from how the U.S. stock indexes perform this week. More selling pressure in stock indexes would likely support safe-haven demand for gold and silver. Rallies in stock markets would likely limit buying interest in the two safe-haven metals. December gold was last down $2.80 at $4,077.40. December silver prices were down $0.068 at $49.84.
Global stock markets were mixed to firmer overnight. U.S. stock indexes are set to open firmer when the New York day session begins.
In weekend news, U.S. officials are pushing Ukraine to accept the terms of a 28-point proposal to end Russia’s war against Ukraine as the basis for negotiations, according to two people familiar with the matter and as reported by Bloomberg. U.S. officials, including Army Secretary Dan Driscoll, Secretary of State Marco Rubio and Special Envoy Steven Witkoff, met with their Ukrainian counterparts in Geneva Sunday to discuss the U.S. plan as President Trump continues to push for a quick deal. The discussions Sunday demonstrated significant progress in reconciling positions and clearly identifying next steps, Andriy Yermak, Ukrainian President Volodymyr Zelenskiy’s chief of staff, said in a post on Telegram and as reported by Bloomberg. Trump’s proposed Nov. 27 deadline to secure Ukraine’s support for the plan isn’t set in stone and could drift into the following week, U.S. Secretary of State Marco Rubio said after the meeting in Switzerland. Any agreement would require sign-off by Zelenskiy, Trump and Russian President Vladimir Putin. Meantime, Ukrainian officials met with European national security advisers Sunday. The U.S. is currently objecting to meeting the Ukrainians and Europeans together, said the people, who spoke on condition of anonymity to discuss private deliberations. The U.S. also asked Ukraine to attest that it provided input into the proposals after it emerged that Moscow contributed heavily to the plan, one of the people said. Under the terms proposed by the U.S., Ukraine would have to withdraw troops from parts of the eastern Donbas region that Russia has failed to fully occupy during its almost four-year full-scale invasion. The area would become a neutral, demilitarized buffer zone internationally recognized as Russian.
The key outside markets today see the U.S. dollar index slightly lower. Crude oil prices are near steady and trading around $58.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.06%.
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 the November high of $4,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at $4,100.00 and then at last week’s high of $4,134.30. First support is seen at the overnight low of $4,036.40 and then at Friday’s low of $4,018.10. Wyckoff's Market Rating: 6.5.
December silver futures bulls have the overall near-term technical advantage but have faded. Their next upside price objective is closing prices above solid technical resistance at the record high of $54.415. The next downside price objective for the bears is closing prices below solid support at $47.00. First resistance is seen at $50.00 and then at Friday’s high of $51.57. Next support is seen at $49.00 and then at last week’s low of $48.05. Wyckoff's Market Rating: 6.5.
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