Gold prices are sharply higher and silver is posting solid gains in early U.S. trading Monday. Fresh safe-haven buying and bargain hunting after recent selling pressure are featured to start the trading week. December gold was last up $30.10 at $2,600.20 and December silver was up $0.463 at $30.895.
In weekend news, U.S. President Biden has authorized Ukraine to strike Russia using U.S.-supplied long-range missiles. The decision will allow for attacks farther inside Russia and comes as Russian President Putin positions North Korean troops along Ukraine’s northern border to try to reclaim territory seized by Ukrainian forces. This has put heightened uncertainty into this major geopolitical event and prompted safe-haven demand for gold and silver.
Bloomberg reports Goldman Sachs has named gold as one of its top commodity trades for next year, with an upside target of $3,000 an ounce by December of 2025. Goldman cited the uncertainty regarding the new Trump presidency and hit policies.
Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed to firmer openings when the New York day session begins.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil futures prices are up a bit and trading around $67.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.463%.
U.S. economic data due for release Monday is light and includes the NAHB housing market index and Treasury international capital data.
Technically, December gold bears have the overall near-term technical advantage. Prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,650.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support $2,500.00. First resistance is seen at $2,620.00 and then at $2,633.40. First support is seen at the overnight low of $2,568.50 and then at Friday’s low of $2,558.90. Wyckoff’s Market Rating: 4.0.
December silver futures bears have the overall near-term technical advantage. Prices are trending down on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $32.50. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at $31.00 and then at $31.255. Next support is seen at the overnight low of $30.35 and then at $30.00. Wyckoff’s Market Rating: 4.0.
Source: Jim Wyckoff Kitco
