Gold and silver prices are climbing in midday U.S. trading on Monday, with silver showing particularly strong gains. The uptick in precious metals is supported by expectations of dovish stances from central banks, fueled by Friday’s disappointing U.S. jobs report and the upcoming European Central Bank’s monetary policy meeting. Despite the overall gains, gold’s advance is being tempered by a stronger U.S. dollar index. December gold is up $5.40 at $2,529.80, while December silver has risen $0.457 to $28.265.
U.S. stock indexes are notably higher at midday, with the market working to recover from last Friday’s losses driven by weaker-than-expected employment data, which reignited recession fears. The Federal Reserve’s Federal Open Market Committee (FOMC) will meet next week, and the European Central Bank will hold its meeting this Thursday.
This week’s key U.S. economic data will be Wednesday’s consumer price index (CPI) for August, anticipated to show a 2.6% year-on-year increase, down from July’s 2.9% rise. The core CPI, excluding food and energy, is expected to remain at a 3.2% annual increase. The U.S. producer price index report will be released on Thursday.
In other key markets, the U.S. dollar index is higher, and Nymex crude oil prices are trading around $68.50 per barrel, with traders monitoring a storm in the Gulf of Mexico that could potentially develop into a hurricane. The benchmark 10-year U.S. Treasury note is currently yielding 3.714%.
From a technical perspective, December gold bulls maintain a strong near-term advantage. Their next target is to achieve a close above the significant resistance level of $2,570.40. On the downside, bears aim to push prices below solid support at $2,475.00. Immediate resistance levels are at $2,540.00 and $2,550.00, while support is at the overnight low of $2,514.20 and the September low of $2,502.70. Wyckoff’s Market Rating for gold is 8.0.
For December silver futures, the market is currently balanced between bulls and bears. Silver bulls are aiming to close above solid resistance at $30.00, while bears target closing prices below support at $26.885. Initial resistance levels are at $29.00 and $29.55, with support at $28.00 and $27.50. Wyckoff’s Market Rating for silver is 5.0.
