DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Spot gold and silver advanced in early U.S. trading Monday as a softer dollar, falling crude oil prices and renewed hopes for diplomacy between Washington and Tehran supported precious metals. Gold traded near $4,124.74 an ounce, up $54.15, or 1.33%, while silver reached about $52.759, up $0.815, or 1.57%.

Gold extended its recovery after gaining approximately 5% last week. The Democratic sweep of the U.S. midterm elections initially pushed Treasury yields and the dollar lower, although stronger employment data on Friday later renewed pressure on precious metals.

The October employment report showed nonfarm payrolls increasing by 165,000, far above expectations for roughly 65,000 jobs. The unemployment rate slipped to 4.1% from 4.2%, while average hourly earnings rose 0.4% for the month and 3.1% from a year earlier.

August and September payroll totals were revised upward by a combined 84,000 jobs. Professional and business services added 70,000 positions, health care gained 42,000, and transportation and warehousing added 25,000.

Other reports also pointed to resilient economic activity. Third quarter nonfarm business productivity increased at a 3.6% annualized rate, unit labor costs declined 0.7%, weekly initial jobless claims fell to 189,000, and September job openings increased to 7.523 million.

The October Institute for Supply Management manufacturing index rose to 55.5 from 54.5 in September. Together, the reports indicated firm labor demand and business activity, even as higher borrowing costs and recent volatility in technology shares continued to threaten business investment.

Interest rate futures showed approximately a 79% to 81% probability of a 25 basis point increase in December, up from roughly 71% before the payroll report. The benchmark 10 year Treasury yield traded near 4.87%, while the two year yield stood around 4.54%.

The dollar was modestly weaker, helping gold and silver despite expectations for tighter monetary policy. Lower crude prices eased some inflation concerns, but persistent wage growth and strong hiring remained important issues for Federal Reserve policymakers.

Tuesday’s October consumer price index report, due at 8:30 a.m. EST, stood as the week’s main economic event. September consumer prices increased 0.6% during the month and 3.7% annually, leaving investors focused on both headline and core inflation.

A softer October inflation reading could lower expectations for December tightening, pull Treasury yields and the dollar down, and strengthen precious metals. A stronger reading could reinforce the employment report’s message and renew pressure on assets such as gold that pay no yield.

President Donald Trump indicated that additional U.S. military strikes against Iran were highly unlikely while settlement negotiations continued. Those comments prompted traders to reduce some of the geopolitical risk premium in crude prices, extending the sharp decline recorded last week.

No binding settlement had been announced, and commercial shipping conditions remained uncertain. The United States and Iran both reported attacks affecting shipping in or near the Strait of Hormuz, keeping tanker traffic, sanctions, maritime restrictions and possible renewed escalation in focus.

Brent crude fell toward $94.76 a barrel Monday, while WTI also declined as traders reconsidered supply disruption risks. Lower energy prices offered relief from inflation expectations, but Friday’s payroll data meant the metals outlook also depended on evidence that consumer and producer inflation was cooling.

Global equities strengthened before the U.S. open as technology shares recovered and oil prices declined. S&P 500 futures gained approximately 0.7%, Dow futures rose around 1%, and Nasdaq futures added about 0.4%, while major Asian and European markets also moved higher.

Gold faced initial resistance at $4,147.62, followed by $4,200.09 and the broader $4,250.00 area. Support stood at $4,088.51 and $4,051.45, while a deeper decline could bring $4,000.00 into view.

Silver faced resistance between $53.107 and $54.617, with a sustained move above that zone targeting $55.000. Support was identified at $51.153 and $49.989, with $48.000 representing a deeper downside objective.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.