Gold sees modest price gains amid weaker USDX

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(Kitco News) – Gold and silver prices are modestly up in early U.S. trading Monday, supported in part by a lower U.S. dollar index to start the trading week. Gains in the safe-haven metals are limited by less risk aversion in the marketplace to start the trading week—despite the still very fluid situation of U.S. President Trump’s Covid-19 condition. December gold futures were last up $2.40 at $1,909.80 and December Comex silver was last up $0.106 at $24.155 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are set to open the New York day session higher. To start the trading week, traders and investors are focused on the aspect of President Trump’s condition improving following him testing positive for Covid-19 last week and entering the hospital Friday. Reports said Trump could be released from Walter Reed hospital today. Also, some are arguing that former vice president Joe Biden’s widening lead in the presidential polls that could provide a more decisive outcome of the election is a positive for trader and investor sentiment. However, others would argue a Biden presidential victory would not be good for the stock market, given his pledge to raise taxes and roll back some of Trump’s decrees to free up restrictions on U.S. business and industry. Still, most agree Trump’s Covid condition is still very fluid and could change quickly.

Traders are still watching the U.S. Congress and its seemingly half-hearted effort to get a second major stimulus package to American citizens and businesses.

Meantime, in other overnight news, the Eurozone reported upbeat retail sales data for August—up 4.4% from July and up 3.7% year-on-year. The Eurozone September composite purchasing managers index (PMI) was also a bit better than expected at 50.4 versus expectations for a reading of 50.1. A reading above 50.0 suggests growth in the sector.

The important outside markets early today see the U.S. dollar index weaker. Nymex crude oil prices are solidly higher and trading around $38.50 a barrel. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.71% today.

U.S. economic data due for release Monday includes the U.S. services purchasing managers index (PMI) the employment trends index, the ISM report on business services, and the global services PMI.

Live 24 hours gold chart [Kitco Inc.]

Technically, the December gold futures bulls have the overall near-term technical advantage but prices are still trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,950.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at last week’s high of $1,923.60 and then at $1,950.00. First support is seen at the overnight low of $1,891.20 and then at $1,880.00. Wyckoff’s Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

December silver futures bulls have the overall near-term technical advantage. However, prices are still trending lower on the daily chart. Silver bulls’ next upside price objective is closing 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 the September low of $21.81. First resistance is seen at last week’s high of $24.545 and then at $25.00. Next support is seen at $23.235 and then at $23.00. Wyckoff’s Market Rating: 6.5.

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