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(Kitco News) – Gold and silver prices are slightly lower in early U.S. trading Monday, on routine downside corrections after recent gains. The precious metals bulls still have some upside momentum. December gold was last down $2.00 at $1,826.00 and December Comex silver was last down $0.107 at $24.43 an ounce.
The U.S. data point of the day Tuesday is the producer price index report for October, which is seen coming in at up 0.6% from September. The September report showed a rise of 0.5%. A hotter PPI reading is likely to impact several markets, including bonds, metals, currencies and the U.S. stock indexes.
Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. There remains little risk aversion in the global marketplace at present. Recent positive news on the Covid-19 front—falling infection rates in the U.S. and new, powerful drugs to combat the virus—have contributed to the upbeat marketplace attitudes and are also helping to lift equities markets. For now, traders and investors are pushing aside the growing prospects for rising and even problematic price inflation.
In overnight news, Bitcoin prices rose to another record high near $68,000.
The key outside markets today see the U.S. dollar index a bit firmer. The USDX last week hit a new high for the year. Nymex crude oil prices are higher and trading around $82.35 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.482%.
Other U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain stores sales indexes, and the NFIB small business index.
Technically, December gold futures bulls have the overall near-term technical advantage and have momentum. A five-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,836.90. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,758.50. First resistance is seen at the overnight high of $1,830.70 and then at $1,836.90. First support is seen at this week’s low of $1.813.80 and then at $1,800.00. Wyckoff’s Market Rating: 6.5.
The silver bulls and bears are on a level overall near-term technical playing field but the bulls have some momentum on their side. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at this week’s high of $24.59 and then at $24.75. Next support is seen at this week’s low of $24.13 and then at $24.00. Wyckoff’s Market Rating: 5.0.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.