Gold Prices Stiffen In The Face Of Equity Market Highs.

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Nov 04, 2019 10:04 NY TimeKitco 10AM Silver Fix

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(Kitco, Mon. Nov. 4th, 2019) – Gold and silver prices are modestly up in early U.S. trading Monday, despite rallying world stock markets that saw the U.S. indexes score new record highs overnight. December gold futures were last up $2.20 an ounce at 1,513.60. December Comex silver prices were last up $0.113 at $18.16 an ounce. 

Underlying bullish elements at work in favor of the gold and silver market bulls are Nymex crude oil prices hitting a six-week high overnight, a still-wobbly U.S. dollar index and chart postures that remain overall bullish for both precious metals.  Nymex crude oil prices firmer in early U.S. trading today and trading around $56.80 a barrel. Meantime, the U.S. dollar index is slightly up.  

China is set to launch new cryptocurrency backed by gold, reports over the weekend said. Said one analyst: It may take some time for the investing public to trust China’s backing of the new gold cryptocurrency. 

In other news, the Euro zone reported its October manufacturing purchasing managers’ index (PMI) was 45.9 versus 45.6 in September and expectations for an October reading of 45.7. A reading below 50.0 suggests contraction in the sector. The German manufacturing PMI was reported at 42.1 in October.

U.S. economic data due for release Monday includes the ISM New York report on business, the employment trends index, the global manufacturing PMI, and manufacturers’ shipments and inventories.

Technically, the gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,543.30. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,520.90 and then at $1,525.00. First support is seen at Friday’s low of $1,505.40 and then at $1,500.00.

December silver futures bulls have the overall near-term technical advantage. Prices have been trending higher for five weeks. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.35 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.44. First resistance is seen at $18.25 and then at $18.35. Next support is seen at $17.795 and then at last week’s low of $17.59.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com