Gold and silver prices are showing signs of stability, with a slight downward trend, as the attention of traders and investors moves away from the Israel-Hamas conflict. Market factors are beginning to regain their influence, resulting in limited buying interest for precious metals. The recent rally in the U.S. dollar index and a marginal increase in U.S. Treasury yields this week are contributing to the subdued performance. At the start of trading, December gold slipped by $0.40 to reach $1,985.70, while December silver fell by $0.136 to $22.98.
Global stock markets exhibited mixed trends overnight, with Asian and European stocks showing diverse performances. As the New York trading session approaches, U.S. stock indexes are expected to open mostly weaker.
In recent developments, China’s government announced plans to stimulate its economy by issuing 1 trillion ($137 billion) in sovereign bonds, with the aim of upgrading infrastructure. This news drove up Chinese stock markets. On another note, Chinese property developer Country Garden reportedly defaulted on its dollar debt, marking the first instance of such an occurrence after failing to complete the payment within the grace period that concluded last week.
Turning to the key external markets, the U.S. dollar index has strengthened, while Nymex crude oil prices witnessed a slight decrease, hovering around $85.50 per barrel. The yield on the 10-year U.S. Treasury note currently stands at 4.863%.
Today’s economic calendar for the United States includes the weekly MBA mortgage applications survey, new residential sales data, and the DOE liquid energy stocks report.
From a technical perspective, gold futures remain in favor of the bulls in the near term, as prices continue to trend higher on the daily bar chart. The next target for the upside is a close above the significant resistance level at $2,050.00. Conversely, bears have their sight set on pushing futures prices below solid technical support at $1,900.00. Initial resistance levels stand at this week’s high of $1,994.30, followed by the psychological level of $2,000.00. On the downside, support can be found at this week’s low of $1,964.60, with further support at $1,957.00. According to Wyckoff’s Market Rating, the current state stands at 6.0.
As for silver, the bulls retain the overall technical advantage in the near term, as prices continue to trend higher on the daily bar chart. The next objective for the bulls is to close December futures prices above solid technical resistance at $24.00. On the flip side, the bears’ target is to push prices below the firm support level at $22.00. Initial resistance is observed at Tuesday’s high of $23.35, followed by this week’s high of $23.505. Support levels are noted at this week’s low of $22.805, followed by $22.555. Wyckoff’s Market Rating for silver is currently at 6.0.