Gold Extends Gains to New High
December gold futures climbed to fresh contract and record highs in early U.S. trading, last up $12.40 at $3,690.00. Strong fundamentals and bullish technicals continue to draw buyers.
December silver futures were down $0.087 at $41.81.
Stocks Mixed Globally; Wall Street Seen Slightly Higher
U.S. stock indexes pointed to slightly firmer opens in New York. Overseas, equity markets were mixed overnight.
Europe: Political Uncertainty Weighs on France
European stocks wavered as investors assessed efforts in France to shore up public finances. President Emmanuel Macron is moving to appoint a new prime minister after Francois Bayrou was ousted. Ongoing political divisions are pressuring French assets and lifting the country’s risk premium.
China Yuan Holds Gains; Fed Cut Bets Build
The offshore Chinese yuan held near 7.12 per dollar, supported by a softer U.S. dollar. Growing concerns over a cooling U.S. labor market bolstered expectations for Federal Reserve rate cuts as soon as next week. Traders are pricing about an 89% chance of a 25 bp cut, with some seeing risk of 50 bp.
Key Outside Markets
- U.S. dollar index: slightly lower
- Crude oil (futures): around $62.75 per barrel
- U.S. 10-year Treasury yield: about 4.07%
Data on Deck
Today’s U.S. calendar is light, featuring the Johnson Redbook retail sales report and the NFIB Small Business Index.
Technical Picture — December Gold
Bulls maintain a strong near-term technical edge.
- Bull objective: close above $3,750.00
- Bear objective: push below solid support at $3,550.00
- First resistance: $3,700.00
- Next resistance: $3,725.00
- First support: overnight low $3,669.80
- Next support: $3,650.00
- Wyckoff’s Market Rating: 9.0
Technical Picture — December Silver
Silver’s near-term trend remains positive; a bull flag has formed on the daily chart.
- Bull objective: close above $45.00
- Bear objective: close below $38.00
- First resistance: week’s high $42.355
- Next resistance: $43.00
- First support: week’s low $41.08
- Next support: last week’s low $40.555
- Wyckoff’s Market Rating: 8.5
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