Price pressure on gold, silver amid keener risk appetite

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Dec 14, 2020 09:46 NY TimeKitco 10AM Silver Fix

(KitcoNews. Mon. Dec.14th, 2020) – Gold and silver futures prices are lower in early U.S. dealings Monday. Selling pressure to start the trading week comes from a “risk-on” trader and investor mentality in the market place. February gold futures were last down $14.70 at $1,828.80 and March Comex silver was last down $0.122 at $23.97 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Trader and investor risk appetite is upbeat as the first U.S. Covid-19 vaccines are rolling out early this week to hopefully turn the tide on the pandemic that has ravaged much of the planet over the past many months. Also, the U.S. Congress’s on-again, off-again U.S. financial aid package for Americans appears to be on again, reports said, as Democrats and Republicans are reportedly closer to agreement on a deal that is a bit smaller in scope. Also, weekend reports said the U.K. and the European Union extended a Sunday deadline to complete a deal on a smooth Brexit.

On tap this week is the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting, which could reveal insight on the plans for the U.S. central bank in the coming new year. The meeting starts on Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell.

Markets are so far paying little attention to reports over the weekend that a major computer hack of some U.S. government offices has occurred over the past months, with many believing Russia is the culprit. Also, Google is having major global problems Monday with its email and other applications.

The U.S. dollar index is lower early today. The other important outside market sees January Nymex crude oil futures prices higher and trading around $47.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.9%.

There is no major U.S. economic data due for release Monday.

Technically, the February gold futures bulls and bears are on a level overall near-term technical playing field but the bulls are fading. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the December high of $1,879.80. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,767.20. First resistance is seen at the overnight high of $1,845.60 and then at $1,850.00. First support is seen at the overnight low of $1,820.00 and then at $1,810.00.

March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the November high of $26.27 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.93. First resistance is seen at $24.25 and then at $24.50. Next support is seen at last week’s low of $23.63 and then at $23.00.

Posted by ;

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com