(Kitco News) – Gold prices are holding mild gains in early U.S. dealings Monday. Light support is coming from a weaker U.S. dollar index, firmer crude oil prices and falling U.S. government bond yields on this first trading day of the week and of the month. December gold was last up $3.90 at $1,787.80 and December Comex silver was last up $0.006 at $23.955 an ounce.
Global stock markets were mixed but mostly firmer in overnight trading. The U.S. stock indexes are pointed to higher openings and record highs in the S&P 500 and Nasdaq indexes when the New York day session begins. As the calendar turns to November and the historically turbulent months of September and October are now behind, the stock market bulls are feeling even more confident. The seasonal “Santa Claus rally” may carry equities still higher into the end of the year.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are higher and trading around $84.00 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.573%.
U.S. economic data due for release Monday includes the U.S. manufacturing PMI, the ISM report on business manufacturing, and construction spending.
Technically, December gold futures bulls have the overall near-term technical advantage as prices are in a four-week-old uptrend on the daily chart. However, the bulls need to show fresh power soon to keep the price uptrend alive. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,836.90. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at $1,800.00 and then at the October high of $1,815.50. First support is seen at today’s low of $1.780.20 and then at last week’s low of $1,772.40. Wyckoff’s Market Rating: 6.0
The silver bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart, but the bulls need to show fresh power soon to keep it alive. Silver bulls’ next upside price objective is closing December futures 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 $23.00. First resistance is seen at Friday’s high of $24.14 and then at $24.50. Next support is seen at last week’s low of $23.705 and then at $23.50. Wyckoff’s Market Rating: 6.0.
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