Gold price down as U.S. dollar index sharply up

Gold and silver prices are lower in early U.S. trading Monday, once again pressured by strong gains in the U.S. dollar index to start the trading week.

U.S. bond yields have risen a bit recently, which is also a negative for the safe-haven metals. December gold was last down $13.10 at $1,741.50 and December silver was down $0.347 at $20.655.

Global stock markets were mostly lower overnight. U.S. stock indexes are headed for lower openings when the New York day session begins. Risk aversion is keener to start a U.S. holiday-shortened trading week. U.S. markets are closed Thursday for the Thanksgiving holiday. China has recorded its first Covid deaths in six months as the world’s second-largest economy continues to struggle with rising Covid cases and lockdowns. Reports said infections in Beijing have more than doubled the past few days. This news has stock and commodity markets under pressure due to global demand worries.

Wednesday will be the busiest day for U.S. economic data, including the minutes from the last FOMC monetary policy meeting, to be released in the early afternoon.

The key outside markets today see the U.S. dollar index sharply higher. Nymex crude oil prices are weaker and trading around $79.75 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently 3.833%.

U.S. economic data due for release Monday is light and includes the Chicago Fed national activity index.

Technically, the gold futures bulls have lost their slight overall near-term technical advantage. 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 $1,667.00. First resistance is seen at the overnight high of $1,755.00 and then at $1,770.00. First support is seen at $1,725.00 and then at $1,700.00. Wyckoff’s Market Rating: 5.0

The silver bulls have the slight overall near-term technical advantage but are fading a bit. A choppy, 2.5-month-old uptrend is still in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the November high of $22.38. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $21.00 and then at $21.50. Next support is seen at $20.50 and then at $20.00. Wyckoff’s Market Rating: 5.5.