Gold, Silver Near Steady Ahead Of Busy Data Week
(Kitco News) - Gold and silver prices are near unchanged in early U.S. trading Monday. The markets are pausing ahead of a very active week for economic data. December Comex gold was last down $0.60 an ounce at $1,271.20. December Comex silver was last down $0.027 at $16.725 an ounce.
This week’s economic onslaught includes the FOMC meeting that begins Tuesday and ends Wednesday afternoon with a statement. Friday brings the U.S. employment report for October. Also, the Bank of Japan and Bank of England hold monetary policy meetings this week.
Global stock markets were mixed to slightly weaker overnight. China’s stock market was down on worries about its slumping bond markets. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. U.S. indexes on Friday hit record highs. World stock markets that are at or near record or multi-year highs continue to be a bearish element for the competing asset class, precious metals.
News just out that the U.S. special prosecutor has indicted a key Trump administration campaign official is so far having little impact on the markets.
Tensions appeared to ease in Spain’s Catalonia region over the weekend. Catalonia’s leader called for non-violent protests for the regions secession from Spain. Meantime, the Spanish prime minister called for elections in the Region in December.
Reports over the weekend said President Donald Trump will nominate Jerome Powell as the next chairman of the Federal Reserve.
The key “outside markets” on Monday morning find the U.S. dollar index lower, on a corrective pullback from recent good gains that saw the index Friday hit a 3.5-month high. Meantime, Nymex crude oil futures prices are slightly lower and trading just below $54.00 a barrel. Prices Friday hit a six-month high.
U.S. economic data due for release Monday includes personal income and outlays, and the Texas manufacturing outlook survey.
Technically, December gold futures bulls and bears are on a level overall near-term technical playing field but the bears still have some downside momentum. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the October low of $1,262.80. First support is seen at 1,262.80 and then at $1,250.00. First resistance is seen at 1,275.00 and then at $1,280.00. Wyckoff’s Market Rating: 5.0
December silver bulls and bears are also on a level overall near-term technical playing field, but the bears also have momentum on their side. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.345. First resistance is seen at $16.87 and then at $17.00. Next support is seen at Friday’s low of $16.60 and then at $16.50. Wyckoff's Market Rating: 5.0.