In the latest trading session, gold and silver prices fell as the dollar index rebounded and oil prices declined, creating a favorable environment for metal market bears. COMEX December gold futures dropped by $7.10 to $2,698.70 per ounce, while COMEX December silver futures decreased by $0.08 to $31.775 per ounce.
Asian and European stock indices experienced mixed movements, and U.S. indices are expected to open slightly lower. Markets had a brief rebound after a decisive victory in the U.S. presidential election. The Federal Reserve's decision to cut the main interest rate by 0.25% saw a muted market reaction, and Fed Chair Jerome Powell maintained his position despite political pressure.
Christopher Brightman, CEO of Research Affiliates, noted that the bond market will act as a judge of the new administration's policies due to limited fiscal space in the U.S.
China's recent approval of a $1.4 trillion bill to issue local government bonds aims to alleviate debt burdens. The dollar index remains stable, with NYMEX crude oil prices trading around $71.50 per barrel. The 10-year U.S. Treasury note yield currently stands at 4.308%.
On the technical front, COMEX December gold futures still hold a slight short-term technical advantage. Bulls aim to close above the all-time high of $2,801.80, while bears target the October low of $2,618.80. Key resistance levels are at $2,717.80 and $2,735.00, with support at $2,687.30 and $2,675.00.
COMEX December silver futures also retain a short-term technical edge, though waning. Bulls look to break $33.50, while bears aim for below $30. Resistance levels sit at $32.00 and $32.50, with support at $31.42 and $30.94.
Spot gold prices are at $2,691.66 per ounce, down 0.54%, with COMEX gold at $2,699.3 per ounce, down 0.24%. Spot silver stands at $31.438 per ounce, down 1.79%, with COMEX silver at $31.565 per ounce, down 0.91%.
