(Kitco News) – Gold prices are modestly down in early U.S. trading Monday, pressured a bit by a return of trader and investor risk appetite to the world marketplace—despite potentially disruptive elements that still loom over the stock and financial markets. December gold futures were last down $3.20 an ounce at $1,225.50. December Comex silver was last down $0.01 at $14.64 an ounce.
Global stock markets were mostly higher overnight. Asian shares gained, led by China’s stock market rallying more than 4% as Chinese economic officials said they are prepared to stimulate the economy, including cutting personal taxes. European stock markets were also up, but worries remain regarding Italy’s budget problems with the European Union, and with Brexit concerns. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
The U.S.-China trade war remains in focus after Trump administration economic advisor Larry Kudlow said China is doing “nothing” to mitigate the matter. Reports last week said President Trump and Chinese leader Xi Jinping will meet at the G20 conference in Argentina in late November.
Thursday’s European Central Bank regular monetary policy meeting will be closely watched by the marketplace. No change in EU monetary policy is expected, but ECB chief Mario Draghi’s press conference could provide clues on future moves by the central bank. Also, Draghi could comment on the rift between Italy’s new government and the EU.
The U.S. economic highlight this week will be the first estimate of third-quarter GDP due out Friday morning. GDP is seen up 3.4% in the third quarter, on an annual basis.
The key outside markets today find the U.S. dollar index higher. Meantime, November Nymex crude oil prices are near steady and just above $69.00 a barrel.
U.S. economic data due for release Monday is light and includes the Chicago Fed national activity index.
Technically, gold bulls have the near-term technical advantage. The recent pause is not bearish. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,250.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at the October high of $1,236.90 and then at $1,240.00. First support is seen at last week’s low of $1,220.40 and then at $1,215.00. Wyckoff’s Market Rating: 6.0
December silver futures bears still have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at last week’s high of $14.88 and then at the October high of $14.95. Next support is seen at last week’s $14.47 and then at the October low of $14.255. Wyckoff’s Market Rating: 3.0.
By Jim Wyckoff
For Kitco News