Gold price up slightly amid friendly external market forces
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(Kitco News) – Gold prices held modest gains in early U.S. trades on Monday. Slight support comes from a weaker US dollar index, firmer crude oil prices and falling US Treasury bond yields on this first trading day of the week and month. Gold last rose $ 3.90 to $ 1,787.80 in December and Comex silver last rose $ 0.006 to $ 23.955 an ounce in December.
Global equity markets were mixed, but mostly firmer in overnight trading. The US stock indices point to higher opens and record highs in the S&P 500 and Nasdaq indices as the New York day session begins. With the calendar turning to November and the historically turbulent months of September and October behind them, the bulls are even more confident. The seasonal âSanta Claus rallyâ could carry stocks higher until the end of the year.
The most important foreign markets see the US dollar index slightly lower today. Nymex crude oil prices are higher, trading at around $ 84.00 a barrel. The US 10-year Treasury yield is now 1.573%.
The US economic data due to be released on Monday includes the US manufacturing PMI, ISM report on corporate output and construction spending.
Technically, the December gold futures bulls have the overall near-term technical advantage in December as prices on the daily chart are on a four-week uptrend. However, the bulls will soon have to show renewed vigor to keep the uptrend in prices alive. The bulls’ next price target is to hit a close above solid resistance at the September high of $ 1,836.90. Bears’ next short-term target price is to push futures prices below solid technical support at $ 1,750.00. Initial resistance is seen at $ 1,800.00 and then the October high of $ 1,815.50. Initial support is found at today’s low of $ 1,780.20 and then last week’s low of $ 1,772.40. Wyckoff’s market valuation: 6.0
The silver bulls have the overall short term technical advantage. Prices are on a four-week-old uptrend on the daily bar chart, but the bulls will soon have to regain strength to keep them alive. The silver bulls’ next price target is the December futures closing price above solid technical resistance at $ 25.00 an ounce. The next downside target for the bears is to close below the solid support at $ 23.00. Initial resistance is seen at Friday’s high of $ 24.14 and then $ 24.50. The next support is seen at last week’s low at $ 23.705 and then at $ 23.50. Wyckoff’s market valuation: 6.0.
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