Gold is almost flat with the emergence of obstacles in front of the US government’s spending. Gold prices are yellow, close to flat in midday US markets on Monday. Partly light, partly short-term purchases by futures traders and light safe-haven purchases ahead of key US government spending events late this weekend are offset by gold’s short-term technical stance. December gold futures were last up $0.40 to trade at $1,752.20. December Comex silver was last trading at $22.69 an ounce, up $0.265. For details Cryptocoin. com

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Gold fiadollaryellow and US conjuncture

This week’s focus is on US government spending. As President Biden’s infrastructure package prepares for a House vote on Thursday, the US government’s funding will expire at midnight Thursday and parts of the government will shut down on Friday if not extended. If it turns out that the US government may partially shut down, some concerns in the market may emerge later this week. On the other hand, European countries and China are experiencing an energy crisis that is not expected to be resolved any time soon. This indicates that crude oil and natural gas prices will remain higher for a while. This underlies the rise for most of the commodities sector, including metals.

Major foreign markets see the US dollar index slightly stronger today. Nymex crude oil futures prices are at a three-year high and are trading at around $75.40 a barrel. This is also bullish for metals. The 10-year U.S. Treasury bond yield currently brings in 1.446%. Bond yields, which have been rising lately, are bearish for safe-haven gold and silver.

Technical view

Technically speaking, December futures gold bears generally have the short-term technical advantage and there is a three-week price downtrend on the daily bar chart, according to analyst Wyckoff. The bulls’ next upside price target is to produce a close above the solid resistance at last week’s high at $1,788.40. According to analyst Wyckoff, the bears’ next short-term bearish price target is to push futures prices below solid technical support at $1,700.00. Initial resistance is seen at today’s high at $1,760,90 followed by $1,775.00. Initial support is seen at the September low at $1,737.50, followed by $1,730.00.

The technical outlook for silver, according to analyst Wyckoff, is as follows: December silver futures bears generally have a short-term technical advantage. Fiyadollarsar is in a three-week downtrend on the daily bar chart. The silver bulls’ next upside price target is to close above the solid technical resistance at $24.00 an ounce for the yellow price. The next downside price target for the bears is to close the price below solid support at $21.00. Initial resistance is seen at $23.00 followed by last week’s high at $23.15. The next support is seen at today’s low at $22.39, followed by September’s low at $22.025.

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Michael Lewis


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