(Kitco News) – Gold prices are solidly lower in early U.S. trading Monday, as trader and investor risk appetite is upbeat to start the trading week. December gold futures were last down $16.70 an ounce at 1,506.90. September Comex silver prices were last down $0.227 at $16.895 an ounce.
Global stock markets were higher in overnight trading. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Trader and investor attitudes are more robust to start the trading week. There were no major geopolitical developments over the weekend, and it appears the civil unrest in Hong Kong did not escalate, as many had feared.
Upbeat comments about the U.S. economy from President Trump and his economic officials, namely saying there is no recession on the horizon, is also boosting investor confidence.
News over the weekend that China plans to further stimulate its economy with interest rate reforms has combined with news late last week that the European Central Bank plans further monetary policy stimulus in September has brightened the world marketplace.
Safe-haven assets U.S. Treasuries are also under selling pressure to start the week. The U.S. Treasury market yield curve is no longer inverted after briefly becoming so last week.
In other overnight news, the Euro zone July consumer price index was reported down 0.5% from June and up 1.0%, year-on-year. It was yet another report coming from a major world economy that shows very low inflation, to the point of likely being problematic.
The key “outside markets” today see Nymex crude oil prices higher and trading around $55.50 a barrel. The U.S. dollar index is modestly higher.
Later this week the annual Jackson Hole, Wyoming Federal Reserve confab that sees central banks of the world attending will be closely monitored by the marketplace.
There is no major U.S. economic data due for release Monday.
Technically, the gold bulls still have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the August high of $1,546.10. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,488.90. First resistance is seen at $1,515.00 and then at today’s high of $1,523.60. First support is seen at the overnight low of $1,503.30 and then at $1,500.00. Wyckoff’s Market Rating: 7.5
September silver futures bulls still have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the August high of $17.49 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.51. First resistance is seen at $17.00 and then at today’s high of $17.175. Next support is seen at today’s low of $16.82 and then at $16.685. Wyckoff’s Market Rating: 7.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
