Gold, silver tread water Monday, awaiting new fundamental inputs

(Kitco News) - Gold and silver prices are trading not far from unchanged in subdued midday U.S. trading Monday. Rising government bond yields recently and an appreciating U.S. dollar on the foreign exchange market are bearish elements for the safe-haven metals. However, Nymex crude oil pushing to a seven-year high of $82.18 a barrel today is a bullish factor for the metals markets. Traders are awaiting a fresh fundamental spark, possibly to come from U.S. data out this week that includes inflation readings Wednesday and Thursday. December gold futures were last down $0.40 at $1,757.00. December Comex silver was last down $0.01 at $22.695 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are modestly up at midday. The U.S. government is closed for the Columbus Day holiday Monday, including the U.S. Treasury markets. That is making for quieter trading in the U.S. today. Traders and investors worldwide are still a bit tentative to start the trading week. Supply-chain bottlenecks and rising energy prices are prompting worries about slowing global economic growth. Goldman Sachs over the weekend cut its U.S. economic growth forecasts for this year and next. Some European countries are worried about having enough energy for winter heating. These concerns followed an uninspiring U.S. employment report released Friday morning.

The 10-year U.S. Treasury note yield is presently fetching 1.612%. Bond yields are on the rise, which has heightened fears of rising inflation or even stagflation, which is a combination of rising prices and slowing economic growth. 

Technically, December gold futures bears have the slight overall near-term technical advantage. A four-week-old price downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,721.10. First resistance is seen at $1,771.50 and then at last week’s high of $1,782.40. First support is seen at today’s low of $1,749.90 and then at last week’s low of $1,745.40. Wyckoff's Market Rating: 4.5

December silver futures bears have the firm overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.41. First resistance is seen at $23.00 and then at last week’s high of $23.22. Next support is seen at last week’s low of $22.185 and then at $22.00. Wyckoff's Market Rating: 2.5.

December N.Y. copper closed up 910 points at 436.65 cents today. Prices closed nearer the session high today and hit a three-week high. The copper bulls have gained the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 447.15 cents. The next downside price objective for the bears is closing prices below solid technical support at 410.00 cents. First resistance is seen at today’s high of 438.50 cents and then at 441.80 cents. First support is seen at 430.00 cents and then at today’s low of 425.55 cents. Wyckoff's Market Rating: 6.0.