(Kitco News) – Gold and silver prices are weaker in early U.S. trading Monday. The bulls need some new, positive fundamental developments to break the near-term price downtrends in place on the daily bar chart. December gold futures were last down $7.10 an ounce at 1,505.80. December Comex silver prices were last down $0.055 at $17.565 an ounce.
Risk aversion is not keen in the marketplace to start the trading week. There are no geopolitical hotspots on the front burner at present, but some are lingering close, including civil unrest in Hong Kong, turbulence in the Middle East, Brexit and the U.S.-China trade war.
Asian stocks were mixed overnight. China’s markets were still closed for a holiday Monday. European stock markets were a down modestly following some more downbeat manufacturing data coming out of Germany. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
In focus Monday is the U.S.-China trade talks that restart this week in Washington, D.C. There is no consensus on whether this latest round of discussions will make any progress toward a trade agreement.
The World Gold Council said world central banks in August purchased 62.1 tons of gold and sold 4.8 tons. That’s way up from central banks buying a net total of 12.8 tons in July.
Nymex crude oil prices are up and trading around $53.40 a barrel today. The other key “outside market” sees the U.S. dollar index slightly down in early U.S. trading.
U.S. economic data due for release Monday includes the employment trends index and consumer credit.
Technically, the gold bulls have the overall near-term technical advantage and have stabilized the market. Still, a four-week-old downtrend line is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,543.30. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at last week’s low of $1,465.00. First resistance is seen at the overnight high of $1,518.80 and then at last week’s high of $1,525.80. First support is seen at $1,500.00 and then at $1,490.00. Wyckoff’s Market Rating: 6.0
December silver futures bulls and bears are on a level overall near-term technical playing field. A four-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.94. First resistance is seen at the overnight high of $17.70 and then at last week’s high of $17.845. Next support is seen at Friday’s low of $17.33 and then at $17.24. Wyckoff’s Market Rating: 5.0.
By Jim Wyckoff
For Kitco News