Gold Drops To 4-Wk. Low Amid Surging US Dollar

New York (Nov 12)  Gold prices are modestly down and hit a four-week low in early U.S. trading Monday, pressured by a very strong U.S. dollar on the foreign exchange market. Silver prices are also slightly down and hovering near a two-month low. December gold futures were last down $2.70 an ounce at $1,205.90. December Comex silver was last down $0.05 at $14.09 an ounce.

Global stock markets were mixed overnight, with European shares mostly weaker and Asian shares mostly firmer. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

China’s stock market did post a modest rebound Monday as Alibaba’s “singles day” sale saw Chinese consumers buy $30.8 billion in goods on-line Sunday. That beat last year’s 24-hour total of $25.3 billion.

The U.S. government is closed today for the Veterans Day holiday.

The key “outside markets” today find the U.S. dollar index solidly higher and hitting a 16-month high overnight. The Euro currency hit a 16-month low against the greenback.

Meantime, Nymex crude oil futures prices are firmer and trading around $60.50 a barrel after hitting a seven-month low on Friday. Reports today say Saudi Arabia will cut its oil exports and prod the OPEC oil cartel to lower its collective crude oil production, in the wake of the recent steep downdraft in oil prices.

There is no major U.S. economic data due for release Monday, due in part to the federal holiday.

Technically, gold bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,246.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00.

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