Gold price modestly up, but holding Friday significant gains

Gold prices are slightly higher in early U.S. trading Monday, but they are still holding Friday’s strong gains, which included a technically bullish weekly high close, which is one chart clue that the market has reached a bottom. Silver prices are slightly lower, but the bulls are still in good shape after recent gains. A weaker US dollar index is a positive daily factor for the metals markets as the trading week begins. December gold was $1.90 higher at $1,678.30, while December silver was $0.074 lower at $20.71.

Overnight, global stock markets were mostly up. When the New York day session begins, US stock indexes are expected to open higher. Another busy week of corporate earnings reports is on the way.

The United States’ midterm elections on Tuesday will be a focus for the market this week.

In overnight news, China’s exports fell 0.3% year on year in October, the worst performance since May of 2020. China’s imports fell 0.7% during the same period. Despite widespread rumours to the contrary, Chinese health officials stated over the weekend that they will maintain their “zero-Covid” policies.

Today’s key external markets show the US dollar index falling. Crude oil prices on the New York Mercantile Exchange have fallen to around $91.50 per barrel. Ten-year U.S. The yield on the 10-year Treasury note is 4.144%.

The employment trends index and consumer credit will be released in the United States on Monday.

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Technically, gold futures bears have the upper hand in the short term. However, recent choppy and sideways price action suggests that the market has reached a bottom. The bulls’ next price target is to close above solid resistance at $1,700.00. The bears’ next short-term price target is to push futures prices below solid technical support at $1,600.00. The first level of resistance is seen at last week’s high of $1,686.40, followed by $1,700.00. The overnight low of $1,670.00 is the first level of support, followed by $1,650.00. Wyckoff’s Market Score: 2.5

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The silver bulls have the overall technical advantage in the short term. On the daily bar chart, a choppy, nine-week-old uptrend is in place. The next price target for silver bulls is to close above solid technical resistance at the October high of $21.31. The bears’ next downside price target is to close below solid support at $19.00. The overnight high of $20.86 is the first point of resistance, followed by $21.00. The overnight low of $20.435 is seen as support, followed by $20.00. Wyckoff’s Market Score: 6.0.

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