Gold price pulls back as USDX, bond yields rise

(Kitco News, Mon. Nov. 14th, 2022) – Gold and silver prices are weaker in early U.S. trading Monday, on routine downside price corrections following last week’s solid gains. The precious metals are feeling some pressure from a rebound in the U.S. dollar index and rising U.S. Treasury yields to start the trading week. December gold was last down $7.20 at $1,762.30 and December silver was down $0.082 at $21.585.

Global stock markets were mostly lower overnight. U.S. stock indexes are headed for weaker openings when the New York day session begins, on corrective pullbacks from recent strong gains. The S&P 500 stock index on Friday hit a two-month high and the Nasdaq index notched a six-week high. The S&P 500 is trending higher on the daily bar chart, to suggest that a market bottom is in place and that prices can continue to work sideways to higher in the near term.

Traders early this week will keep an eye on the Group of 20 meeting taking place in Bali. U.S. President Joe Biden and Chinese Premiere Xi Jinping are scheduled to meet at the confab. China’s government over the weekend took more stimulative measures to reinvigorate its listing property sector. China has also taken steps recently to ease up on its Covid restrictions that continue to hamper the world’s second-largest economy.

The key outside markets today see Nymex crude oil prices weaker and trading around $88.00 a barrel. The U.S. dollar index is higher on a corrective bounce after hitting a nearly three-month low on Friday. The benchmark U.S. Treasury 10-year note yield is presently fetching 3.891%.

There is no major U.S. economic data due for release Monday. The pace picks up quickly Tuesday, including the release of the producer price index report for October, which is seen coming in at up 0.4% from September and compares to the rise of 0.4% in the September PPI report.

Technically, the gold futures bulls and bears are on a level overall near-term technical playing field after recent solid gains that suggest a market bottom is in place. 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 last week’s low of $1,667.10. First resistance is seen at the November high of $1,775.60 and then at $1,800.00. First support is seen at $1,750.00 and then at $1,738.70.

The silver bulls have the firm overall near-term technical advantage. A choppy, 2.5-month-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at $22.00 and then at the November high of $22.16. Next support is seen at Friday’s low of $21.355 and then at $21.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com