(Kitco News) - Gold pricesmodestly down in early U.S. trading Monday. Bulls are wobbly again and need somenew fundamental information to jumpstart a rally. Decembergold futures were lastdown $4.00 at $1,764.50. December Comexsilver was last down $0.154 at $23.185 anounce.
Globalstock markets were mostly lower in overnight trading. The U.S. stock indexesare pointed to lower openings when the New York day session begins. Riskaversion is keener to start the trading week, amid rising energy costs and increasingworries about stagflation. Nymex crude oil prices hit a seven-year high of $83.87a barrel overnight. China's third-quarter gross domestic product growth slowedto 4.9%, year-on-year, lower than expectations and the slowest pace of growthin a year, hurt by power shortages and supply chain bottlenecks. China's GDProse 7.9% in the second quarter. Meantime, the governor of the Bank of Englandsaid Sunday the BOE will have to act to curb inflationary pressure. He saidinflation in the U.K. had already risen and would rise further, to warrantaction.
Theother key outside market today sees the U.S. dollar index higher. Meantime, the10-year U.S. Treasury note yield is presently fetching 1.609%.
U.S.economic data due for release Monday includes industrial production andcapacity utilization, Treasury international capital data and the NAHB housingmarket index.
Technically,December gold futures bulls have the slight overall near-term technicaladvantage as prices are trending higher on the daily chart, but just barely.Bulls need to show fresh power soon to keep their edge. Bulls' next upside priceobjective is to produce a close above solid resistance at last week's high of $1,801.90.Bears' next near-term downside price objective is pushing futures prices belowsolid technical support at the September low of $1,721.10. First resistance is seenat $1,775.00 and then at $1,782.40. First support is seen at today's low of $1,760.30and then at $1,750.00. Wyckoff's Market Rating: 5.5
The silver bears have the overall near-term technicaladvantage. However, prices are is a fledgling uptrend. Silver bulls' next upsideprice objective is closing December futures prices above solid technical resistanceat $24.00 an ounce. The next downside price objective for the bears is closingprices below solid support at $22.00. First resistance is seen at the overnighthigh of $23.495 and then at last week's high of $24.645. Next support is seen at$23.00 and then at $22.75. Wyckoff's Market Rating: 4.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff