Gold, Silver Prices Rebound In Late US Trading
New York (Oct 23) Gold prices were ending the U.S. day session modestly higher Monday. Silver prices were posting slight gains. Both markets were near their session highs after they hit two-week lows early on. Short covering by the futures traders and some perceived bargain buying in both cash and futures supported the late-session bounce in prices. December Comex gold was last up $1.90 an ounce at $1,282.40. December Comex silver was last up $0.022 at $17.10 an ounce.
World stock markets were mostly higher Monday, but U.S. stock indexes were narrowly mixed in early-afternoon U.S. trading. Still, world stock markets are at or near record or multi-year highs, which underscores the keener risk appetite in the marketplace that has been a bearish element for safe-haven gold.
Japanese elections held over the weekend showed Prime Minister Abe and his coalition government with a lop-sided victory. World stock markets were buoyed on the news from Japan, as Abe is considered to be more dovish on monetary policy.
The U.S. dollar was higher Monday and hit a two-week high overnight. The firmer greenback also limited the upside in the precious metals markets. The other key “outside market saw Nymex crude oil futures prices near steady and trading just below $52.00 a barrel.
Traders and investors this week are anticipating who will be President Trump’s nominee for the next chairman of the Federal Reserve. Jerome Powell has moved to the top of the list among many Fed watchers. Most believe a new Fed chair pick from Trump will be more of a monetary policy hawk than current Fed Chair Janet Yellen. Such a scenario has also been a bearish element for the precious metals markets.
Also this week the European Central Bank holds its regular monetary policy meeting on Thursday. Many expect the ECB to announce more details on the winding down of its bond-buying program.
Technically, December gold futures prices closed nearer the session high. Bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80. First resistance is seen at $1,285.00 and then at $1,292.90.
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