Price pressure on gold causes a decline in foreign markets. Gold prices fell modestly in early US trading on Monday as a stronger US dollar index and lower crude prices kick off the final trading week of 2021. Earnings are also suppressed due to less risk aversion in the market. February gold was last traded at $1,807.70, down $3.90.
Pressure builds for gold prices
Global equity markets were mostly weak on a calmer night in post-holiday trading. Some markets abroad remained closed for the Christmas holidays. US stock indexes point to slightly higher openings as the New York daily session begins. There are still coronavirus concerns, but there are also vaccines and drugs lining up to fight the virus. One market analyst described the market’s current stance on the coronavirus battle as “serious but manageable”. Key “external markets” today are witnessing Nymex crude oil prices falling and trading around $73.00 a barrel. The US dollar index rose slightly earlier today. Meanwhile, the yield on the US Treasury 10-year note is currently 1.481 percent. US economic data due Monday is light and includes the Texas manufacturing outlook survey.
Technically, February gold bulls generally have the short-term technical advantage. The bulls’ next upside price target is to produce a close above solid resistance at $1,840.00. The bears’ next short-term bearish price target is to push futures prices below solid technical support at $1,775.00. Initial resistance is seen at the night high of $1,813.00 followed by the December high of $1,815.70. Initial support is seen at $1,800.00 followed by last week’s low at $1,785.00.