(Kitco News) - Gold and silver prices are lower in early U.S. trading Monday, on profit-taking from the shorter-term futures traders and amid improved trader/investor risk appetite in the general marketplace. Gold hit a six-week high on Monday, while silver hit a record high. February gold was last down $30.50 at $4,244.40. March silver prices were down $0.907 at $58.235.
Global stock markets were mixed overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins. Risk appetite is better today, following good demand for Japanese bonds that Japan’s government held today. On Monday the global bond markets were a bit jittery because of political/financial/economic worries regarding Japan.
In other news, U.S. envoy to meet Putin in Moscow. U.S. envoy Steve Witkoff is traveling to Moscow to meet with Russian President Vladimir Putin to discuss a potential peace plan to end Russia’s war with Ukraine. Putin claimed Russian troops had taken the city of Pokrovsk in Ukraine's eastern Donetsk region, but Ukraine's military staff spokesman denied the claim. Witkoff is due to hold talks with Putin on the latest proposals for ending Russia's invasion of Ukraine, following negotiations between U.S. and Ukrainian officials in Florida this past weekend.
OECD: world economy doing better than expected. The Paris-based think tank Organization for Economic Cooperation and Development (OECD) said the global economy is weathering U.S. and other countries’ trade tariffs better than expected due to strong investment in artificial intelligence and supportive fiscal and monetary policies. The OECD raised its U.S. and European area economic growth forecasts for this year and next but still predicts global growth will slow to 2.9% in 2026 from 3.2% in 2025. The OECD cautioned that the outlook is “fragile” and its projections are “subject to substantial risks” due to concerns about swift changes in trade measures and the risk of abrupt price corrections in the tech sector.
The key outside markets today see the U.S. dollar index up a bit. Crude oil prices are slightly down and trading around $59.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.08%.
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, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $4,433.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,100.00. First resistance is seen at the overnight high of $4,269.20 and then at $4,300.00. First support is seen at the overnight low of $4,210.20 and then at $4,200.00. Wyckoff's Market Rating: 7.5.
March silver futures bulls have the strong overall near-term technical advantage. Their next upside price objective is closing prices above solid technical resistance at $60.00. The next downside price objective for the bears is closing prices below solid support at $52.50. First resistance is seen at the overnight high of $58.475 and then at the contract high of $59.435. Next support is seen at this week’s low of $56.85 and then at $56.00. Wyckoff's Market Rating: 9.0.
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