(Kitco News) - Gold and silver prices are solidly lower in early U.S. trading Monday. Heavy profit-taking and weak long liquidation from the shorter-term futures traders is featured today. Silver hit a record high of $82.67 overnight, basis March Comex futures. February gold futures on Friday hit an all-time high of $4,584.00. February gold was last down $70.40 at $4,482.60. March silver prices were down $2.331 at $74.80.
In overnight news, President Trump said he made “a lot of progress” in talks with Ukrainian President Volodymyr Zelenskiy on Sunday over a possible peace deal, but that it might take a few weeks to get it done. Zelenskiy said the peace framework is “90% agreed” and that U.S.-Ukraine security guarantees are “100% agreed,” but major sticking points remain, including the future of Ukraine’s Donbas region. Trump said he would be willing to speak to Ukraine’s parliament or hold a trilateral meeting with Zelenskiy and Russian President Vladimir Putin, and that he aims to convene a meeting with Zelenskiy and European leaders in January. The tone of the Trump-Zelenskiy news conference after the meeting in Florida was warm, even as it became clear that Trump isn’t much closer to his goal of ending the war that began with Russia’s invasion of Ukraine in 2022.
Copper futures overnight climbed to $5.80 per pound, hitting new record levels on tight global supplies. London Metal Exchange futures reached $12,960 a ton, tracking strong gains in Shanghai and New York. The red industrial metal then sold off on profit taking. Copper prices have surged over 15% in December alone, with year-to-date gains approaching 50% amid supply concerns.
China’s offshore yuan currency weakened to around 7 per U.S. dollar on Monday, easing from a fifteen-month high as investors turned cautious amid China’s central bank efforts to temper rapid one-way moves. The People’s Bank of China set a slightly softer-than-expected midpoint, signaling its intent to rein in excess yuan strength, while state-run media cautioned against betting on unilateral appreciation. Analysts also noted that seasonal foreign exchange flows and rising demand have supported the yuan’s broad uptrend, but appreciation pressure is expected to ease once year-end settlements conclude. Despite short-term caution, global investors continue to expect the yuan’s momentum to persist into 2026, with the key 7 level likely to be tested again, even as authorities reaffirm their commitment to maintaining currency stability. The yuan has gained more than 4.1% against the U.S. dollar so far this year and is on track to log the biggest annual rise since 2020.
The key outside markets today see the U.S. dollar index near steady. Crude oil prices are near steady and trading around $58.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.118%.
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 $4,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,300.00. First resistance is seen at $4,500.00 and then at $4,550.00. First support is seen at the overnight low of $4,454.40 and then at $4,433.00. Wyckoff's Market Rating: 8.5.
March silver futures see today’s price action appears to have produced a big and bearish buying exhaustion tail, whereby the bulls run out of gas at the high and prices back way off to close near the daily low. The bulls’ next upside price objective is closing prices above solid technical resistance at today’s record high of $82.67. The next downside price objective for the bears is closing prices below solid support at $70.00. First resistance is seen at $75.00 and then at $76.00. Next support is seen at the overnight low of $73.73 and then at $73.00. Wyckoff's Market Rating: 8.5.
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