Gold prices down as risk appetite increases

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(Kitco News) – Gold prices are significantly lower at the start of US trading on Monday, as risk appetite of traders and investors is optimistic for the start of the trading week. The December gold futures were down $ 16.70 an ounce at $ 1,506.90. In September, Comex 's money prices were down $ 0.227, to $ 16.895 an ounce.

Global equity markets were higher in overnight trades. US stock indexes are pointing to much higher openings at the beginning of New York's daily session. The attitudes of traders and investors are more robust at the beginning of the trading week. No major geopolitical developments took place this weekend and it seems that the civil unrest in Hong Kong has not escalated, as many feared.

The optimistic comments by President Trump and his economic leaders on the US economy, that there is no recession on the horizon, are also boosting investor confidence.

The news over the weekend that China is planning to boost its economy further with interest rate reforms has combined with last week's news that the European Central Bank is planning new stimulus packages for the economy. Monetary policy in September made the world market clearer.

Safe assets American treasures are also under pressure to start the week. The yield curve of the US Treasury bond market is no longer reversed after being briefly so last week.

Moreover, the consumer price index for the euro area in July was down 0.5% from June and up 1.0% from a year ago. other. This was yet another report from a large global economy that was posting very low inflation, to the point of being a problem.

The main "foreign markets" are now seeing Nymex crude oil prices rise and trade around $ 55.50 per barrel. The US dollar index is slightly higher.

Later this week, the market will closely monitor the annual Jackson Hole Convention, Wyoming, which will be attended by the world's central banks.

There are no important US economic data to publish on Monday.

Technically, gold bulls still have a strong overall technical advantage in the short term. A bullish trend of 2.5 months is in place on the daily bar chart. Bulls next bullish price target is to produce a futures contract in October, above a strong resistance, at the high of $ 1,546.10 reached in August. Bears' next short-term price reduction target pushes December futures prices below strong technical support to $ 1,488.90. The first resistance is seen at $ 1,515.00, then at today's maximum of $ 1,523.60. The first support is at an overnight low of $ 1,503.30, then $ 1,500.00. Wyckoff Market Rating: 7.5

Silver futures in September still have a strong short-term technical advantage. Prices are in a bullish trend of 2.5 months on the daily bar chart. The next bullish price reduction target of the Silver Bulls is to close the closing prices above a strong technical strength at the August high of $ 17.49 an ounce. The next downside price target for bears is a close lower than solid support price at $ 16.51. The first resistance is seen at $ 17.00, then at today's highs, at $ 17.175. The next support is at today's low, at $ 16.82, then at $ 16.685. Wyckoff Market Estimate: 7.0.