Solid price gains for gold, silver after busy news weekend

(Kitco News, Monday. Dec. 9th, 2024) – Gold and silver prices are posting good gains in early U.S. trading Monday, with safe-haven demand featured, following a weekend of important fundamental news developments. February gold was last up $19.40 at $2,679.00 and March silver hit a four-week high and was up $0.872 at $32.46.

The collapse of Syrian strongman Bashar Al-Assad’s rule has the world on watch for more Mideast turmoil. That’s prompting some safe-haven buying of gold and silver. U.S. and Israeli airstrikes hit dozens of military targets inside Syria, to prevent the new regime in Syria from accessing weapons and munitions.

Meantime, Chinese and Asian stocks rallied and the Chinese yuan gained Monday after China said it plans to be “more proactive” in stimulating its listing economy. That’s bullish for metals from a demand perspective, as China is a voracious consumer of raw commodities.

South Korea’s political crisis has pushed that nation’s stocks and currency lower, also prompting some safe-haven demand.

President-elect Donald Trump said he has no plans to replace Federal Reserve Chairman Jerome Powell. Powell’s term expires in May of 2026.

Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed to slightly lower openings when the New York day session begins.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are higher and trading around $68.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.15%.

U.S. economic data due for release Monday includes the employment trends index and monthly wholesale trade. The report pace picks up rapidly Tuesday and Wednesday, including the consumer price index inflation report on Wednesday.

Technically, February gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,748.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at $2,690.00 and then at $2,700.00. First support is seen at $2,650.00 and then at Friday’s low of $2,635.60.

March silver futures bulls have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.75 and then at $33.00. Next support is seen at $32.00 and then at the overnight low of $31.375

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com