Gold price down a bit amid bearish near-term technicals

New York (Sept 27)  Gold prices are modestly down in early U.S. trading Monday. Amid a lack of major, markets-moving news to start the trading week, traders are focusing on the charts, which lean near-term bearish for the gold and silver markets. There is also not much risk aversion in the global marketplace, at present, but that could change later this week. October gold futures were last down $2.10 at $1,747.60. December Comex silver was last down $0.195 at $22.62 an ounce.

Global stock markets were mixed but mostly firmer in overnight trading. The U.S. stock indexes are also pointed to mixed openings when the New York day session begins. Focus this week is on U.S. government spending. President Biden’s infrastructure package is set for a House of Representatives vote on Thursday, while the U.S. government’s funding will expire at midnight Thursday, which if not extended, would shut down part of the government Friday. Some anxiety in the market place could surface late this week if it appears the U.S. government could partly shut down.

In other news, European countries and China are experiencing energy shortages that are not expected to be resolved anytime soon. That suggests crude oil and natural gas prices will remain elevated for some time to come. That’s a bullish underlying element for much of the raw commodity sector.

The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil futures prices are higher and trading around $75.00 a barrel The 10-year U.S. Treasury note yield is presently fetching 1.446%. For perspective, the German 10-year bund is trading at minus 0.238% and the U.K. 10-year gilt at 0.831%.

U.S. economic data due for release Monday includes durable goods orders and the Texas manufacturing outlook survey.

Technically, October gold futures bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $1,785.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at the overnight high of $1,758.70 and then at $1,774.50. First support is seen at last week’s low of $1,736.30 and then at $1,725.00.

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