Market Outlook
Gold and silver prices are slightly up in quieter early U.S. trading on Monday, marking the unofficial last week of summer for the U.S. market. The marketplace is expected to become more active next Tuesday after the three-day U.S. Labor Day weekend holiday. Traders and investors are anticipating a big week for U.S. economic reports, which is likely to increase market activity as the week progresses.
Current Prices
As of now, December gold is down $2.70 at $1,942.50, while December silver is up $0.037 at $24.62.
Global Stock Markets
Asian and European stock markets experienced mostly higher trades overnight. U.S. stock indexes are projected to have slightly higher openings when the New York day session begins. In Asia, trader and investor attitudes were boosted by news that China cut a key tax rate and pledged to support its capital markets.
Currency and Oil
The U.S. dollar index is currently slightly firmer. Nymex crude oil futures prices are slightly higher, trading around $80.00 a barrel. The benchmark U.S. Treasury 10-year note is fetching 4.235%.
Economic Data
Today’s U.S. economic data release is light, with the Texas manufacturing outlook survey being the main focus. However, the data pace is expected to pick up rapidly on Tuesday, as it is a big data week, including the release of the employment situation report on Friday.
Technical Analysis
From a technical standpoint, the gold futures market currently favors the bears in the near term, with the next upside price objective for the bulls being a close in December futures above solid resistance at $1,980.00. On the downside, the bears’ next objective is to push prices below solid technical support at $1,900.00. The first resistance levels are seen at last week’s high of $1,951.30 and then at $1,963.50. The first support levels are seen at Friday’s low of $1,931.00 and then at $1,926.20. The market rating for gold is 3.0.
In contrast, the silver market currently favors the bulls in the near term, with a fledgling price uptrend in place on the daily chart. The next upside price objective for the silver bulls is to close December futures prices above solid technical resistance at the July high of $25.82. On the downside, the bears’ next objective is to close prices below solid support at the August low of $22.585. The first resistance levels are seen at last week’s high of $24.785 and then at $25.00. The first support levels are seen at Friday’s low of $24.31 and then at $24.00. The market rating for silver is 6.0.
